Financial Contrast: USA Rare Earth (NASDAQ:USAR) versus REalloys (NASDAQ:ALOY)
by Mitch Edgeman · The Markets DailyUSA Rare Earth (NASDAQ:USAR – Get Free Report) and REalloys (NASDAQ:ALOY – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
3.6% of REalloys shares are owned by institutional investors. 9.1% of USA Rare Earth shares are owned by insiders. Comparatively, 20.1% of REalloys shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current recommendations and price targets for USA Rare Earth and REalloys, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| USA Rare Earth | 1 | 0 | 9 | 1 | 2.91 |
| REalloys | 1 | 0 | 1 | 1 | 2.67 |
USA Rare Earth currently has a consensus target price of $33.71, suggesting a potential upside of 354.37%. REalloys has a consensus target price of $16.00, suggesting a potential upside of 174.21%. Given USA Rare Earth’s stronger consensus rating and higher possible upside, research analysts clearly believe USA Rare Earth is more favorable than REalloys.
Risk and Volatility
USA Rare Earth has a beta of 2.79, meaning that its share price is 179% more volatile than the S&P 500. Comparatively, REalloys has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
Earnings and Valuation
This table compares USA Rare Earth and REalloys”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| USA Rare Earth | $1.64 million | 1,107.21 | -$297.56 million | ($2.43) | -3.05 |
| REalloys | $2.43 million | 167.29 | -$4.43 million | ($3.16) | -1.85 |
REalloys has higher revenue and earnings than USA Rare Earth. USA Rare Earth is trading at a lower price-to-earnings ratio than REalloys, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares USA Rare Earth and REalloys’ 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% |
| REalloys | -5,145.12% | -192.93% | -163.20% |
Summary
USA Rare Earth beats REalloys on 9 of the 13 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 REalloys
REalloys Inc. operates as a rare earth metals and permanent magnet company in North America. The company produces rare earth metals, such as neodymium, praseodymium, dysprosium, terbium, samarium, gadolinium, yttrium, and scandium; and magnets, such as NdFeB Magnets, SmFe12 Magnets, and MnBi Magnets. The company was founded in 2024 and is headquartered in Euclid, Ohio.