Head-To-Head Survey: MP Materials (NYSE:MP) versus Worthington Steel (NYSE:WS)

Worthington Steel (NYSE:WS) and MP Materials (NYSE:MP) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Profitability

This table compares Worthington Steel and MP Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worthington Steel	N/A	N/A	N/A
MP Materials	N/A	N/A	N/A

Valuation and Earnings

This table compares Worthington Steel and MP Materials”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worthington Steel	N/A	N/A	N/A	($0.61)	-70.01
MP Materials	N/A	N/A	N/A	($0.34)	-120.34

MP Materials is trading at a lower price-to-earnings ratio than Worthington Steel, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Worthington Steel and MP Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worthington Steel	1	1	1	0	2.00
MP Materials	2	1	13	1	2.76

Worthington Steel currently has a consensus price target of $46.00, suggesting a potential upside of 7.72%. MP Materials has a consensus price target of $71.92, suggesting a potential upside of 75.78%. Given MP Materials’ stronger consensus rating and higher probable upside, analysts clearly believe MP Materials is more favorable than Worthington Steel.

Institutional & Insider Ownership

45.4% of Worthington Steel shares are held by institutional investors. Comparatively, 52.5% of MP Materials shares are held by institutional investors. 2.7% of Worthington Steel shares are held by company insiders. Comparatively, 8.2% of MP Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

MP Materials beats Worthington Steel on 7 of the 8 factors compared between the two stocks.

About Worthington Steel

Worthington Steel, Inc. operates as a steel processor in North America. It offers carbon flat-rolled steel and tailor welded blanks, as well as electrical steel laminations; and aluminum tailor welded blanks. The company serves various end-markets, including automotive, heavy truck, agriculture, construction, and energy. Worthington Steel, Inc. was incorporated in 2023 and is based in Columbus, Ohio.

About MP Materials

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.