Financial Comparison: MP Materials (NYSE:MP) vs. Entree Gold (OTCMKTS:ERLFF)

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

Volatility & Risk

MP Materials has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Entree Gold has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.

Earnings and Valuation

This table compares MP Materials and Entree Gold”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MP Materials	$203.85 million	53.89	-$65.42 million	($0.71)	-87.30
Entree Gold	N/A	N/A	-$14.32 million	($0.10)	-17.30

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

Institutional & Insider Ownership

52.6% of MP Materials shares are held by institutional investors. 12.6% of MP Materials shares are held by company insiders. Comparatively, 3.4% of Entree Gold shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for MP Materials and Entree Gold, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MP Materials	1	0	13	1	2.93
Entree Gold	0	0	0	0	0.00

MP Materials currently has a consensus price target of $78.91, suggesting a potential upside of 27.31%. Given MP Materials’ stronger consensus rating and higher probable upside, analysts plainly believe MP Materials is more favorable than Entree Gold.

Profitability

This table compares MP Materials and Entree Gold’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MP Materials	-50.55%	-7.69%	-3.59%
Entree Gold	N/A	N/A	-228.15%

Summary

MP Materials beats Entree Gold on 9 of the 14 factors compared between the two stocks.

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.

About Entree Gold

Entrée Resources Ltd., a mining company, engages in the exploration, evaluation, and development of mineral property interests in Canada. Its principal asset is the Entrée/Oyu Tolgoi joint venture property comprising Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit located in Mongolia. The company was formerly known as Entrée Gold Inc. and changed its name to Entrée Resources Ltd. in May 2017. Entrée Resources Ltd. was incorporated in 1995 and is headquartered in Vancouver, Canada.