Head-To-Head Comparison: Norsk Hydro ASA (OTCMKTS:NHYDY) versus MP Materials (NYSE:MP)

Norsk Hydro ASA (OTCMKTS:NHYDY) and MP Materials (NYSE:MP) are both large-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares Norsk Hydro ASA and MP Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Norsk Hydro ASA	3.11%	10.52%	5.50%
MP Materials	-28.00%	-2.27%	-1.13%

Institutional & Insider Ownership

0.0% of Norsk Hydro ASA shares are owned by institutional investors. Comparatively, 52.6% of MP Materials shares are owned by institutional investors. 0.0% of Norsk Hydro ASA shares are owned by company insiders. Comparatively, 8.2% of MP Materials shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Norsk Hydro ASA and MP Materials”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Norsk Hydro ASA	$20.05 billion	1.13	$647.52 million	$0.31	37.06
MP Materials	$224.44 million	47.83	-$85.87 million	($0.42)	-143.86

Norsk Hydro ASA has higher revenue and earnings than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Norsk Hydro ASA, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Norsk Hydro ASA has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Norsk Hydro ASA and MP Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Norsk Hydro ASA	2	6	3	1	2.25
MP Materials	1	0	14	2	3.00

MP Materials has a consensus price target of $81.00, suggesting a potential upside of 34.06%. Given MP Materials’ stronger consensus rating and higher probable upside, analysts clearly believe MP Materials is more favorable than Norsk Hydro ASA.

Summary

MP Materials beats Norsk Hydro ASA on 8 of the 15 factors compared between the two stocks.

About Norsk Hydro ASA

Norsk Hydro ASA engages in the power production, bauxite extraction, alumina refining, aluminium smelting, and recycling activities; and provision of extruded solutions worldwide. It operates through Hydro Bauxite & Alumina, Hydro Aluminium Metal, Hydro Metal Markets, Hydro Extrusions, and Hydro Energy segments. The Hydro Bauxite & Alumina segment engages in bauxite mining activities, production of alumina, and related commercial activities, primarily the sale of alumina. The Hydro Aluminium Metal segment is involved in the primary aluminum production casting activities. This segment principally offers extrusion ingots, foundry alloys, and sheet and standard ingots. The Metal Markets segment sells products from the company’s primary metal plants; operates recyclers; and trades in physical and financial metals. The Hydro Extrusions segment offers extrusion profiles, building systems, and precision tubing products for construction, automotive and heating, and ventilation and air conditioning sectors, as well as operates recycling facilities. The Hydro Energy segment engages in the trading and wholesale business in Brazil; energy sourcing operations; and operation of power stations in Norway, as well as renewable energy production, such as wind and solar, battery materials, and green hydrogen. Norsk Hydro ASA was founded in 1905 and is headquartered in Oslo, Norway.

About MP Materials

MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.