Comparing MP Materials (NYSE:MP) and IBC Advanced Alloys (OTCMKTS:IAALF)

MP Materials (NYSE:MP) and IBC Advanced Alloys (OTCMKTS:IAALF) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for MP Materials and IBC Advanced Alloys, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MP Materials	1	0	14	2	3.00
IBC Advanced Alloys	0	0	0	0	0.00

MP Materials presently has a consensus price target of $79.08, suggesting a potential upside of 14.21%. Given MP Materials’ stronger consensus rating and higher possible upside, equities research analysts clearly believe MP Materials is more favorable than IBC Advanced Alloys.

Institutional and Insider Ownership

52.6% of MP Materials shares are held by institutional investors. 9.5% of MP Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares MP Materials and IBC Advanced Alloys’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MP Materials	-38.26%	-4.28%	-2.07%
IBC Advanced Alloys	-10.84%	-76.63%	-6.70%

Volatility & Risk

MP Materials has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, IBC Advanced Alloys has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Valuation and Earnings

This table compares MP Materials and IBC Advanced Alloys”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MP Materials	$224.44 million	54.81	-$85.87 million	($0.52)	-133.16
IBC Advanced Alloys	$17.76 million	1.04	-$3.41 million	($0.02)	-8.00

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

Summary

MP Materials beats IBC Advanced Alloys on 11 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 IBC Advanced Alloys

IBC Advanced Alloys Corp. develops, produces, and sells specialty alloy products in the United States and internationally. The company operates through Copper Alloys and Engineered Materials segments. It offers various copper alloys as castings and forgings, such as beryllium copper, chrome copper, oxygen-free high conductivity copper, and aluminum bronze in the form of plates, blocks, rounds, discs, bars, rings, tubes, rods, and other custom forgings, as well as specialty copper alloy forgings for plastic mold tooling and resistance welding applications. The company also provides beryllium-aluminum castings, beryllium-aluminum alloys, beryllium-copper alloys, high-strength beryllium-copper casting alloys, high-conductivity beryllium-copper casting alloys, and beryllium-nickel casting alloys. In addition, it manufactures Thermal-Mold Super, a beryllium-free mold alloy of copper-nickel-silicon-chrome, as well as provides tolling services and consulting. It serves automotive, defense, resistance welding, electronics, industrial equipment, injection molding, foundry, aerospace, and oil and gas industries. The company was formerly known as International Beryllium Corporation and changed its name to IBC Advanced Alloys Corp. in March 2009. IBC Advanced Alloys Corp. is headquartered in Franklin, Indiana.