MP Materials (NYSE:MP) versus Paladin Energy (OTCMKTS:PALAF) Financial Comparison

Paladin Energy (OTCMKTS:PALAFGet Free Report) and MP Materials (NYSE:MPGet Free Report) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Insider & Institutional Ownership

0.0% of Paladin Energy shares are held by institutional investors. Comparatively, 52.5% of MP Materials shares are held by institutional investors. 9.5% of MP Materials shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Paladin Energy and MP Materials, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paladin Energy 0 3 0 0 2.00
MP Materials 1 0 13 1 2.93

Paladin Energy currently has a consensus target price of $9.05, suggesting a potential upside of 12.14%. MP Materials has a consensus target price of $78.91, suggesting a potential upside of 28.62%. Given MP Materials’ stronger consensus rating and higher possible upside, analysts clearly believe MP Materials is more favorable than Paladin Energy.

Profitability

This table compares Paladin Energy and MP Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paladin Energy N/A N/A N/A
MP Materials -50.55% -7.69% -3.59%

Volatility and Risk

Paladin Energy has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500.

Valuation and Earnings

This table compares Paladin Energy and MP Materials”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paladin Energy $177.68 million 20.41 -$44.64 million ($0.12) -67.25
MP Materials $232.74 million 46.72 -$65.42 million ($0.71) -86.41

Paladin Energy has higher earnings, but lower revenue than MP Materials. MP Materials is trading at a lower price-to-earnings ratio than Paladin Energy, indicating that it is currently the more affordable of the two stocks.

Summary

MP Materials beats Paladin Energy on 9 of the 15 factors compared between the two stocks.

About Paladin Energy

(Get Free Report)

Paladin Energy Ltd develops, explores for, owns, and operates uranium mines in Australia, Canada, and Africa. The company operates through Exploration, Namibia, and Australia segments. Its flagship project is the Langer Heinrich mine located in the Namib Desert in Namibia. The company was formerly known as Paladin Resources Ltd and changed its name to Paladin Energy Limited in November 2007. Paladin Energy Ltd was incorporated in 1993 and is headquartered in Perth, Australia.

About MP Materials

(Get Free Report)

MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.

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