USA Rare Earth (NASDAQ:USAR) and REalloys (NASDAQ:ALOY) Financial Survey

REalloys (NASDAQ:ALOY) and USA Rare Earth (NASDAQ:USAR) are both materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Risk & Volatility

REalloys has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, USA Rare Earth has a beta of 2.79, suggesting that its share price is 179% more volatile than the S&P 500.

Insider & Institutional Ownership

3.6% of REalloys shares are owned by institutional investors. 20.1% of REalloys shares are owned by insiders. Comparatively, 9.1% of USA Rare Earth shares are owned by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
REalloys	-5,145.12%	-192.93%	-163.20%
USA Rare Earth	N/A	-9.04%	-7.13%

Earnings and Valuation

This table compares REalloys 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
REalloys	$2.43 million	196.39	-$4.43 million	($3.16)	-2.17
USA Rare Earth	$1.64 million	1,307.16	-$297.56 million	($2.43)	-3.60

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

Analyst Recommendations

This is a summary of recent ratings for REalloys and USA Rare Earth, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REalloys	1	0	1	1	2.67
USA Rare Earth	1	0	9	1	2.91

REalloys presently has a consensus target price of $16.00, suggesting a potential upside of 133.58%. USA Rare Earth has a consensus target price of $33.71, suggesting a potential upside of 284.87%. Given USA Rare Earth’s stronger consensus rating and higher possible upside, analysts clearly believe USA Rare Earth is more favorable than REalloys.

Summary

USA Rare Earth beats REalloys on 9 of the 14 factors compared between the two stocks.

About REalloys

REalloys Inc. operates as a rare earth metals and permanent magnet company in North America. The company produces rare earth metals, such as neodymium, praseodymium, dysprosium, terbium, samarium, gadolinium, yttrium, and scandium; and magnets, such as NdFeB Magnets, SmFe12 Magnets, and MnBi Magnets. The company was founded in 2024 and is headquartered in Euclid, Ohio.

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.