USA Rare Earth (USAR) & Its Competitors Critical Review
by Scott Moore · The Cerbat GemUSA Rare Earth (NASDAQ:USAR – Get Free Report) is one of 103 publicly-traded companies in the “MINING – MISC” industry, but how does it contrast to its competitors? We will compare USA Rare Earth to related companies based on the strength of its analyst recommendations, valuation, risk, profitability, dividends, institutional ownership and earnings.
Earnings and Valuation
This table compares USA Rare Earth and its competitors gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| USA Rare Earth | N/A | $7.90 million | -60.52 |
| USA Rare Earth Competitors | $10.19 billion | $448.48 million | -17.03 |
USA Rare Earth’s competitors have higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Volatility & Risk
USA Rare Earth has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, USA Rare Earth’s competitors have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for USA Rare Earth and its competitors, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| USA Rare Earth | 1 | 0 | 4 | 0 | 2.60 |
| USA Rare Earth Competitors | 731 | 1823 | 3499 | 170 | 2.50 |
USA Rare Earth presently has a consensus price target of $26.00, indicating a potential upside of 59.12%. As a group, “MINING – MISC” companies have a potential upside of 14.66%. Given USA Rare Earth’s stronger consensus rating and higher possible upside, equities analysts clearly believe USA Rare Earth is more favorable than its competitors.
Insider & Institutional Ownership
35.5% of shares of all “MINING – MISC” companies are owned by institutional investors. 46.6% of USA Rare Earth shares are owned by insiders. Comparatively, 9.6% of shares of all “MINING – MISC” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares USA Rare Earth and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| USA Rare Earth | N/A | -16.58% | -0.67% |
| USA Rare Earth Competitors | -1,016.34% | -12.38% | -4.50% |
Summary
USA Rare Earth beats its competitors on 7 of the 13 factors compared.
USA Rare Earth Company Profile
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.