Comparing MP Materials (NYSE:MP) and Compañía de Minas Buenaventura S.A.A. (NYSE:BVN)

MP Materials (NYSE:MP) and Compañía de Minas Buenaventura S.A.A. (NYSE:BVN) are both mid-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares MP Materials and Compañía de Minas Buenaventura S.A.A.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MP Materials $134.31 million 43.13 -$21.83 million $0.22 148.14
Compañía de Minas Buenaventura S.A.A. $676.54 million 3.06 -$135.72 million ($0.50) -16.32

MP Materials has higher earnings, but lower revenue than Compañía de Minas Buenaventura S.A.A.. Compañía de Minas Buenaventura S.A.A. is trading at a lower price-to-earnings ratio than MP Materials, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MP Materials and Compañía de Minas Buenaventura S.A.A., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MP Materials 0 2 6 0 2.75
Compañía de Minas Buenaventura S.A.A. 0 1 0 0 2.00

MP Materials presently has a consensus price target of $39.88, suggesting a potential upside of 22.35%. Compañía de Minas Buenaventura S.A.A. has a consensus price target of $12.00, suggesting a potential upside of 47.06%. Given Compañía de Minas Buenaventura S.A.A.’s higher probable upside, analysts plainly believe Compañía de Minas Buenaventura S.A.A. is more favorable than MP Materials.

Profitability

This table compares MP Materials and Compañía de Minas Buenaventura S.A.A.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MP Materials N/A 8.19% 4.84%
Compañía de Minas Buenaventura S.A.A. 2.05% 1.09% 0.77%

Institutional & Insider Ownership

68.1% of MP Materials shares are owned by institutional investors. Comparatively, 53.7% of Compañía de Minas Buenaventura S.A.A. shares are owned by institutional investors. 49.7% of MP Materials shares are owned by insiders. Comparatively, 19.3% of Compañía de Minas Buenaventura S.A.A. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

MP Materials has a beta of 4.34, suggesting that its share price is 334% more volatile than the S&P 500. Comparatively, Compañía de Minas Buenaventura S.A.A. has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Summary

MP Materials beats Compañía de Minas Buenaventura S.A.A. on 11 of the 14 factors compared between the two stocks.

MP Materials Company Profile

MP Materials Corp. engages in the ownership and operation of integrated rare earth mining and processing facilities. It owns and operates the Mountain Pass facility 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 neodymium and praseodymium that are rare earth elements, which in combination form neodymium-praseodymium. The company was incorporated in 2017 and is headquartered in Las Vegas, Nevada.

Compañía de Minas Buenaventura S.A.A. Company Profile

Compañía de Minas Buenaventura SAA engages in the development and exploration of mineral properties. It operates through the following segments: Production and Sale of Minerals, Exploration and Development Activitie, Energy Generation and Transmission Services, Insurance Brokerage, Rental of Mining Concessions, Holding of Investments in Shares, and Industrial Activities. The company was founded by Alberto Benavides de la Quintana in 1953 and is headquartered in Lima, Peru.

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