Fortuna Mining (NYSE:FSM) versus MP Materials (NYSE:MP) Financial Analysis

Fortuna Mining (NYSE:FSMGet Free Report) and MP Materials (NYSE:MPGet Free Report) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Profitability

This table compares Fortuna Mining and MP Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fortuna Mining 31.07% 16.26% 11.95%
MP Materials -28.00% -2.27% -1.13%

Analyst Ratings

This is a summary of current ratings for Fortuna Mining and MP Materials, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fortuna Mining 1 0 4 0 2.60
MP Materials 1 0 15 3 3.05

Fortuna Mining presently has a consensus price target of $11.00, indicating a potential upside of 27.98%. MP Materials has a consensus price target of $80.14, indicating a potential upside of 47.06%. Given MP Materials’ stronger consensus rating and higher possible upside, analysts clearly believe MP Materials is more favorable than Fortuna Mining.

Valuation & Earnings

This table compares Fortuna Mining and MP Materials”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fortuna Mining $947.06 million 2.75 $287.47 million $1.06 8.11
MP Materials $224.44 million 43.23 -$85.87 million ($0.42) -129.75

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

Risk & Volatility

Fortuna Mining has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500.

Institutional & Insider Ownership

33.8% of Fortuna Mining shares are held by institutional investors. Comparatively, 52.6% of MP Materials shares are held by institutional investors. 1.0% of Fortuna Mining 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 large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

MP Materials beats Fortuna Mining on 8 of the 15 factors compared between the two stocks.

About Fortuna Mining

(Get Free Report)

Fortuna Mining Corp. engages in the precious and base metal mining in Argentina, Burkina Faso, Mexico, Peru, and Côte d’Ivoire. It operates through Mansfield, Sanu, Sango, Cuzcatlan, Bateas, and Corporate segments. The company primarily explores for silver, lead, zinc, and gold. Its flagship project is the Séguéla gold mine, which consists of approximately 62,000 hectares and is located in the Worodougou Region of the Woroba District, Côte d’Ivoire. The company was formerly known as Fortuna Silver Mines Inc. and changed its name to Fortuna Mining Corp. in June 2024. Fortuna Mining Corp. was incorporated in 1990 and is based in Vancouver, Canada.

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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