Lynas Rare Earths (OTCMKTS:LYSDY) versus Energy Fuels (NYSE:UUUU) Critical Comparison
by Sarita Garza · The Markets DailyEnergy Fuels (NYSE:UUUU – Get Free Report) and Lynas Rare Earths (OTCMKTS:LYSDY – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Institutional and Insider Ownership
48.2% of Energy Fuels shares are held by institutional investors. 1.9% of Energy Fuels shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
Energy Fuels has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, Lynas Rare Earths has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.
Profitability
This table compares Energy Fuels and Lynas Rare Earths’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Energy Fuels | -90.40% | -9.16% | -8.67% |
| Lynas Rare Earths | N/A | N/A | N/A |
Valuation & Earnings
This table compares Energy Fuels and Lynas Rare Earths”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Energy Fuels | $38.66 million | 27.81 | $99.86 million | ($0.22) | -24.77 |
| Lynas Rare Earths | $303.78 million | 13.45 | $55.42 million | N/A | N/A |
Energy Fuels has higher earnings, but lower revenue than Lynas Rare Earths.
Analyst Ratings
This is a summary of current ratings and price targets for Energy Fuels and Lynas Rare Earths, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Energy Fuels | 0 | 2 | 2 | 0 | 2.50 |
| Lynas Rare Earths | 0 | 1 | 0 | 0 | 2.00 |
Energy Fuels currently has a consensus target price of $8.50, suggesting a potential upside of 55.96%. Given Energy Fuels’ stronger consensus rating and higher probable upside, analysts clearly believe Energy Fuels is more favorable than Lynas Rare Earths.
Summary
Energy Fuels beats Lynas Rare Earths on 8 of the 12 factors compared between the two stocks.
About Energy Fuels
Energy Fuels Inc., together with its subsidiaries, engages in the extraction, recovery, recycling, exploration, permitting, evaluation, and sale of uranium mineral properties in the United States. The company produces and sells vanadium pentoxide, rare earth elements, and heavy mineral sands, such as ilmenite, rutile, zircon, and monazite. The company was formerly known as Volcanic Metals Exploration Inc. and changed its name to Energy Fuels Inc. in May 2006. Energy Fuels Inc. was incorporated in 1987 and is headquartered in Lakewood, Colorado.
About Lynas Rare Earths
Lynas Rare Earths Limited, together with its subsidiaries, engages in the exploration, development, mining, extraction, and processing of rare earth minerals in Australia and Malaysia. The company holds interests in the Mount Weld and Kalgoorlie projects in Western Australia. Its products include lanthanum, cerium, praseodymium, neodymium, samarium, europium, gadolinium, terbium, and dysprosium. The company also develops and operates advanced material processing and concentration plants, as well as offers corporate services. The company was formerly known as Lynas Corporation Limited and changed its name to Lynas Corporation Limited in November 2020. Lynas Rare Earths Limited was incorporated in 1983 and is based in Perth, Australia.