Head to Head Analysis: Lundin Mining (OTCMKTS:LUNMF) versus USA Rare Earth (NASDAQ:USAR)

Lundin Mining (OTCMKTS:LUNMF) and USA Rare Earth (NASDAQ:USAR) are both materials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Volatility & Risk

Lundin Mining has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, USA Rare Earth has a beta of 2.66, indicating that its share price is 166% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Lundin Mining and USA Rare Earth, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lundin Mining	0	8	4	0	2.33
USA Rare Earth	1	0	10	0	2.82

USA Rare Earth has a consensus price target of $33.71, suggesting a potential upside of 154.83%. Given USA Rare Earth’s stronger consensus rating and higher possible upside, analysts plainly believe USA Rare Earth is more favorable than Lundin Mining.

Profitability

This table compares Lundin Mining and USA Rare Earth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lundin Mining	31.82%	13.18%	9.73%
USA Rare Earth	N/A	-9.04%	-7.13%

Institutional and Insider Ownership

0.1% of Lundin Mining shares are owned by institutional investors. 0.4% of Lundin Mining shares are owned by company insiders. Comparatively, 9.1% of USA Rare Earth 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 and Earnings

This table compares Lundin Mining and USA Rare Earth”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lundin Mining	$4.05 billion	5.00	$1.28 billion	$1.73	13.76
USA Rare Earth	$1.64 million	1,974.17	-$297.56 million	($2.43)	-5.44

Lundin Mining has higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than Lundin Mining, indicating that it is currently the more affordable of the two stocks.

Summary

Lundin Mining beats USA Rare Earth on 8 of the 14 factors compared between the two stocks.

About Lundin Mining

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, Brazil, the United States, Portugal, Sweden, and Argentina. It primarily produces copper, zinc, gold, nickel, and molybdenum, as well as lead, silver, and other metals. The company holds 100% interests in the Chapada mine located in Brazil; the Eagle mine located in the United States; the Neves-Corvo mine located in Portugal; and the Zinkgruvan mine located in Sweden. It also holds 80% interests in the Candelaria and Ojos del Salado mining complex; and 51% interest in the Caserones copper-molybdenum mine located in Chile, as well as owns the copper gold Josemaria project located in Argentina. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Vancouver, Canada.

About USA Rare Earth

USA Rare Earth, Inc. is domestic supplier of rare earth magnets and heavy rare earth elements. It is developing a vertically integrated, domestic supply chain for rare earth element magnet production, with a facility in Stillwater, Oklahoma, and mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas. The company was founded in May 2019 and is headquartered in Stillwater, OK.