MP Materials (NYSE:MP) and Deep Yellow (OTCMKTS:DYLLF) Financial Review
by Kim Johansen · The Markets DailyDeep Yellow (OTCMKTS:DYLLF – Get Free Report) and MP Materials (NYSE:MP – Get Free Report) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.
Analyst Recommendations
This is a summary of recent ratings and target prices for Deep Yellow and MP Materials, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Deep Yellow | 0 | 1 | 0 | 1 | 3.00 |
| MP Materials | 1 | 0 | 16 | 2 | 3.00 |
Deep Yellow presently has a consensus target price of $1.85, suggesting a potential upside of 88.78%. MP Materials has a consensus target price of $79.42, suggesting a potential upside of 83.92%. Given Deep Yellow’s higher possible upside, equities analysts clearly believe Deep Yellow is more favorable than MP Materials.
Insider and Institutional Ownership
52.5% of MP Materials shares are owned by institutional investors. 8.2% of MP Materials shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Deep Yellow and MP Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Deep Yellow | N/A | N/A | N/A |
| MP Materials | -28.00% | -2.27% | -1.13% |
Risk and Volatility
Deep Yellow has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, MP Materials has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.
Valuation & Earnings
This table compares Deep Yellow and MP Materials”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Deep Yellow | $7.51 million | 126.96 | $4.64 million | N/A | N/A |
| MP Materials | $254.28 million | 30.23 | -$85.87 million | ($0.42) | -102.82 |
Deep Yellow has higher earnings, but lower revenue than MP Materials.
About Deep Yellow
Deep Yellow Limited, together with its subsidiaries, operates as a uranium exploration company in Namibia. The company holds a 100% interest in the Reptile project, which covers an area of 896 square kilometers (km2); 65% interest in the Nova Joint Venture covering an area of 599 km2; and 85% interest in the Yellow Dune Joint Venture covering an area of 190 km2. It is involved in the iron ore exploration and property investment businesses. The company was incorporated in 1985 and is headquartered in Subiaco, Australia.
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.