MP Materials (NYSE:MP – Get Rating) and Freeport-McMoRan (NYSE:FCX – Get Rating) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
Profitability
This table compares MP Materials and Freeport-McMoRan's net margins, return on equity and return on assets.
Get MP Materials alerts:| Net Margins | Return on Equity | Return on Assets | |
| MP Materials | 49.26% | 25.19% | 13.59% |
| Freeport-McMoRan | 20.08% | 22.04% | 10.65% |
Volatility and Risk
MP Materials has a beta of 2.83, meaning that its share price is 183% more volatile than the S&P 500. Comparatively, Freeport-McMoRan has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500.
Earnings & Valuation
This table compares MP Materials and Freeport-McMoRan's top-line revenue, earnings per share and valuation.| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MP Materials | $331.95 million | 14.45 | $135.04 million | $1.32 | 20.47 |
| Freeport-McMoRan | $22.85 billion | 1.76 | $4.31 billion | $3.29 | 8.56 |
Freeport-McMoRan has higher revenue and earnings than MP Materials. Freeport-McMoRan is trading at a lower price-to-earnings ratio than MP Materials, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
71.5% of MP Materials shares are owned by institutional investors. Comparatively, 77.4% of Freeport-McMoRan shares are owned by institutional investors. 41.3% of MP Materials shares are owned by company insiders. Comparatively, 0.7% of Freeport-McMoRan shares are owned 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.
Analyst Ratings
This is a summary of current ratings for MP Materials and Freeport-McMoRan, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MP Materials | 0 | 0 | 8 | 0 | 3.00 |
| Freeport-McMoRan | 1 | 7 | 8 | 0 | 2.44 |
MP Materials presently has a consensus price target of $49.06, indicating a potential upside of 81.55%. Freeport-McMoRan has a consensus price target of $42.00, indicating a potential upside of 49.09%. Given MP Materials' stronger consensus rating and higher possible upside, analysts clearly believe MP Materials is more favorable than Freeport-McMoRan.
Summary
MP Materials beats Freeport-McMoRan on 9 of the 13 factors compared between the two stocks.
About MP Materials
(Get Rating)
MP Materials Corp. owns and operates rare earth mining and processing facilities. It owns and operates the Mountain Pass Rare Earth mine located in the Western Hemisphere. The company 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. It offers cerium, lanthanum, neodymium, praseodymium, and samarium. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.
About Freeport-McMoRan
(Get Rating)
Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. The company also operates a portfolio of oil and gas properties primarily located in offshore California and the Gulf of Mexico. As of December 31, 2021, it operated approximately 135 wells. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014. Freeport-McMoRan Inc. was incorporated in 1987 and is headquartered in Phoenix, Arizona.
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