5E Advanced Materials (NASDAQ:FEAM – Get Rating) and Lynas Rare Earths (OTCMKTS:LYSDY – Get Rating) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.
Risk and Volatility
5E Advanced Materials has a beta of 2.27, indicating that its share price is 127% more volatile than the S&P 500. Comparatively, Lynas Rare Earths has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Insider & Institutional Ownership
26.0% of 5E Advanced Materials shares are owned by institutional investors. Comparatively, 0.1% of Lynas Rare Earths shares are owned by institutional investors. 12.4% of 5E Advanced Materials shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| 5E Advanced Materials | N/A | -96.48% | -67.82% |
| Lynas Rare Earths | N/A | N/A | N/A |
Analyst Ratings
This is a summary of current recommendations for 5E Advanced Materials and Lynas Rare Earths, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 5E Advanced Materials | 0 | 0 | 3 | 0 | 3.00 |
| Lynas Rare Earths | 0 | 0 | 0 | 0 | N/A |
5E Advanced Materials currently has a consensus target price of $25.67, suggesting a potential upside of 451.97%. Given 5E Advanced Materials’ higher possible upside, equities research analysts clearly believe 5E Advanced Materials is more favorable than Lynas Rare Earths.
Valuation and Earnings
This table compares 5E Advanced Materials and Lynas Rare Earths’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 5E Advanced Materials | N/A | N/A | -$66.71 million | ($1.32) | -3.52 |
| Lynas Rare Earths | $839.27 million | 4.73 | $392.37 million | N/A | N/A |
Lynas Rare Earths has higher revenue and earnings than 5E Advanced Materials.
Summary
5E Advanced Materials beats Lynas Rare Earths on 5 of the 9 factors compared between the two stocks.
About 5E Advanced Materials
5E Advanced Materials Inc. engages in the exploration and development of mineral properties in Australia and the United States. The company primarily explores for borates and lithium deposits. It focuses on the Fort Cady project located in Southern California. The company was formerly known as American Pacific Borates Limited. 5E Advanced Materials Inc. was incorporated in 2016 and is headquartered in Houston, Texas.
About Lynas Rare Earths
Lynas Rare Earths Ltd. engages in the production of rare earth minerals. It focuses on the exploration, development, mining, and processing of rare earth deposits. The company was founded by Nicholas Anthony Curtis on May 25, 1983 and is headquartered in Perth, Australia.
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