Comparing USA Rare Earth (NASDAQ:USAR) and Coeur Mining (NYSE:CDE)

Coeur Mining (NYSE:CDE) and USA Rare Earth (NASDAQ:USAR) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Coeur Mining and USA Rare Earth, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Coeur Mining	0	4	9	1	2.79
USA Rare Earth	1	0	10	0	2.82

Coeur Mining presently has a consensus target price of $25.50, suggesting a potential upside of 44.66%. USA Rare Earth has a consensus target price of $33.71, suggesting a potential upside of 139.45%. Given USA Rare Earth’s stronger consensus rating and higher probable upside, analysts clearly believe USA Rare Earth is more favorable than Coeur Mining.

Profitability

This table compares Coeur Mining and USA Rare Earth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Coeur Mining	26.82%	11.03%	7.57%
USA Rare Earth	N/A	-9.04%	-7.13%

Institutional and Insider Ownership

63.0% of Coeur Mining shares are held by institutional investors. 0.9% of Coeur Mining shares are held by insiders. Comparatively, 9.1% of USA Rare Earth shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Coeur Mining and USA Rare Earth”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Coeur Mining	$2.07 billion	8.75	$585.87 million	$1.17	15.07
USA Rare Earth	$1.64 million	2,101.01	-$297.56 million	($2.43)	-5.79

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

Risk & Volatility

Coeur Mining has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, USA Rare Earth has a beta of 2.58, indicating that its share price is 158% more volatile than the S&P 500.

Summary

Coeur Mining beats USA Rare Earth on 9 of the 15 factors compared between the two stocks.

About Coeur Mining

Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico. The company primarily explores for gold, silver, zinc, and lead properties. It markets and sells its concentrates to third-party customers, smelters, under off-take agreements. The company was formerly known as Coeur d'Alene Mines Corporation and changed its name to Coeur Mining, Inc. in May 2013. Coeur Mining, Inc. was incorporated in 1928 and is headquartered in Chicago, Illinois.

About USA Rare Earth

USA Rare Earth, Inc. is domestic supplier of rare earth magnets and heavy rare earth elements. It is developing a vertically integrated, domestic supply chain for rare earth element magnet production, with a facility in Stillwater, Oklahoma, and mining rights to the Round Top heavy rare earth and critical minerals deposit in West Texas. The company was founded in May 2019 and is headquartered in Stillwater, OK.