Financial Analysis: USA Rare Earth (NASDAQ:USAR) versus Voestalpine (OTCMKTS:VLPNY)

USA Rare Earth (NASDAQ:USAR) and Voestalpine (OTCMKTS:VLPNY) are both mid-cap materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, institutional ownership, earnings, risk and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for USA Rare Earth and Voestalpine, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
USA Rare Earth	1	0	10	0	2.82
Voestalpine	1	2	3	0	2.33

USA Rare Earth currently has a consensus target price of $33.71, indicating a potential upside of 154.83%. Given USA Rare Earth’s stronger consensus rating and higher probable upside, equities analysts clearly believe USA Rare Earth is more favorable than Voestalpine.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
USA Rare Earth	N/A	-9.04%	-7.13%
Voestalpine	3.39%	6.66%	3.30%

Volatility and Risk

USA Rare Earth has a beta of 2.66, meaning that its stock price is 166% more volatile than the S&P 500. Comparatively, Voestalpine has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Valuation and Earnings

This table compares USA Rare Earth and Voestalpine”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
USA Rare Earth	$1.64 million	1,974.17	-$297.56 million	($2.43)	-5.44
Voestalpine	$17.47 billion	0.49	$492.57 million	$0.70	14.24

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

Summary

Voestalpine beats USA Rare Earth on 7 of the 12 factors compared between the two stocks.

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.

About Voestalpine

Voestalpine AG processes, develops, manufactures, and sells steel products in Austria, European Union, and internationally. The company operates through five segments: Steel, High Performance Metals, Metal Engineering, Metal Forming, and Other. The Steel division produces hot and cold-rolled steel strips, as well as electrogalvanized, hot-dip galvanized, and organically coated steel strips; and heavy plates for the energy sector, as well as turbine casings for automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. The High Performance Metals segment offers special alloys for the oil and natural gas, aerospace, and energy engineering industries; tool manufacturing, component processing, heat treatment, and coating services; and warehousing and preprocessing of special steels, as well as services, including logistics, distribution, and processing for the oil and natural gas industries for automotive, white goods/consumer goods, building/construction, aerospace, mechanical engineering, and others. The Metal Engineering division offers rails and turnout products, rod and drawn wires, seamless tubes, and welding consumables and machinery; rails and digital monitoring systems; and services for rail infrastructure. This segment serves railway systems, automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. The Metal Forming division manufactures special tubes and sections, and precision strip steel products, as well as pre-finished system components made from pressed, stamped, and roll-profiled parts for use in automotive, white goods/consumer goods, building/construction, energy, mechanical engineering, and others. The company is headquartered in Linz, Austria.