Financial Contrast: Lynas Rare Earths (OTCMKTS:LYSDY) versus McEwen (NYSE:MUX)

Lynas Rare Earths (OTCMKTS:LYSDY) and McEwen (NYSE:MUX) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Lynas Rare Earths and McEwen’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lynas Rare Earths	N/A	N/A	N/A
McEwen	31.40%	13.65%	9.05%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Lynas Rare Earths and McEwen, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lynas Rare Earths	0	2	0	3	3.20
McEwen	0	2	4	0	2.67

McEwen has a consensus price target of $29.83, indicating a potential upside of 35.77%. Given McEwen’s higher probable upside, analysts plainly believe McEwen is more favorable than Lynas Rare Earths.

Institutional & Insider Ownership

17.0% of McEwen shares are held by institutional investors. 14.8% of McEwen shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Lynas Rare Earths and McEwen”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lynas Rare Earths	$356.61 million	38.70	$5.17 million	N/A	N/A
McEwen	$197.55 million	6.65	$34.43 million	$1.18	18.62

McEwen has lower revenue, but higher earnings than Lynas Rare Earths.

Risk & Volatility

Lynas Rare Earths has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, McEwen has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Summary

McEwen beats Lynas Rare Earths on 9 of the 13 factors compared between the two stocks.

About Lynas Rare Earths

Lynas Rare Earths Limited, together with its subsidiaries, engages in the exploration, development, mining, extraction, and processing of rare earth minerals in Australia and Malaysia. The company holds interests in the Mount Weld and Kalgoorlie projects in Western Australia. Its products include lanthanum, cerium, praseodymium, neodymium, samarium, europium, gadolinium, terbium, and dysprosium. The company also develops and operates advanced material processing and concentration plants, as well as offers corporate services. The company was formerly known as Lynas Corporation Limited and changed its name to Lynas Corporation Limited in November 2020. Lynas Rare Earths Limited was incorporated in 1983 and is based in Perth, Australia.

About McEwen

McEwen Mining Inc. engages in the exploration, development, production, and sale of gold and silver. It also explores for copper deposits. The company owns 100% interests in the El Gallo and Fenix projects located in Mexico; and the Black Fox Mine and Stock Mill, Grey Fox, and Froome and Tamarack properties in Canada. It also owns interests in the Fuller, Davidson-Tisdale, Buffalo Ankerite, and Paymaster exploration properties located in Canada; and a 49% interest in the San José mine located in Argentina. In addition, the company owns 100% interests in the Gold Bar and Tonkin properties located in Eureka County, Nevada; and interests in the Los Azules copper project located in the cordilleran region in the province of San Juan, Argentina. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is headquartered in Toronto, Canada.