Comparing MP Materials (NYSE:MP) & New Era Helium (NASDAQ:NEHC)

MP Materials (NYSE:MP) and New Era Helium (NASDAQ:NEHC) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Profitability

This table compares MP Materials and New Era Helium’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%
New Era Helium	N/A	N/A	N/A

Earnings & Valuation

This table compares MP Materials and New Era Helium”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MP Materials	$232.74 million	44.17	-$65.42 million	($0.71)	-81.69
New Era Helium	$530,024.00	134.36	-$13.78 million	($0.41)	-12.00

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

Volatility and Risk

MP Materials has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, New Era Helium has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for MP Materials and New Era Helium, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MP Materials	1	0	13	2	3.00
New Era Helium	0	0	0	0	0.00

MP Materials currently has a consensus target price of $78.91, indicating a potential upside of 36.05%. Given MP Materials’ stronger consensus rating and higher probable upside, equities research analysts plainly believe MP Materials is more favorable than New Era Helium.

Insider and Institutional Ownership

52.5% of MP Materials shares are held by institutional investors. Comparatively, 21.9% of New Era Helium shares are held by institutional investors. 9.5% of MP Materials shares are held by company insiders. Comparatively, 6.3% of New Era Helium shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

MP Materials beats New Era Helium on 8 of the 15 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 New Era Helium

New Era Helium, Inc. is an exploration and production company that sources helium produced in association with the production of natural gas reserves in North America. The company was founded in 2023 and is headquartered in Midland, TX.