North American Construction Group (NYSE:NOA – Get Free Report) and USA Rare Earth (NASDAQ:USAR – Get Free Report) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Profitability
This table compares North American Construction Group and USA Rare Earth’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| North American Construction Group | 2.41% | 6.23% | 1.50% |
| USA Rare Earth | N/A | -9.04% | -7.13% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for North American Construction Group and USA Rare Earth, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| North American Construction Group | 1 | 4 | 2 | 0 | 2.14 |
| USA Rare Earth | 1 | 0 | 10 | 0 | 2.82 |
Insider & Institutional Ownership
75.0% of North American Construction Group shares are held by institutional investors. 9.7% of North American Construction Group shares are held by company insiders. Comparatively, 9.1% of USA Rare Earth shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares North American Construction Group 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 | |
| North American Construction Group | $919.14 million | 0.38 | $24.22 million | $0.79 | 15.85 |
| USA Rare Earth | $1.64 million | 2,295.00 | -$297.56 million | ($2.43) | -6.33 |
North American Construction Group has higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than North American Construction Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
North American Construction Group has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, USA Rare Earth has a beta of 2.58, indicating that its stock price is 158% more volatile than the S&P 500.
Summary
North American Construction Group beats USA Rare Earth on 9 of the 14 factors compared between the two stocks.
About North American Construction Group
North American Construction Group Ltd. provides mining and heavy civil construction services to customers in the resource development and industrial construction sectors in Australia, Canada, and the United States. The company operates Heavy Equipment – Canada, Heavy Equipment – Australia, and Other segments. It also offers mine management services for thermal coal mines; and construction and operations support services in the Canadian oil sands region. In addition, the company provides fully maintained heavy equipment rentals and full service mine operations support at metallurgical and thermal coal mines; heavy equipment rentals to iron ore, gold and lithium producers; and heavy equipment maintenance, component remanufacturing, and full equipment rebuild services to mining companies and other heavy equipment operators, as well as supplies production-critical components to the mining and construction industry. As of December 31, 2023, it operated a heavy equipment fleet of 900 units. The company was formerly known as North American Energy Partners Inc. and changed its name to North American Construction Group Ltd. in April 2018. North American Construction Group Ltd. was incorporated in 1953 and is headquartered in Acheson, 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.
Receive News & Ratings for North American Construction Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for North American Construction Group and related companies with MarketBeat.com's FREE daily email newsletter.
