Energy Fuels (NYSE:UUUU) & Lynas Rare Earths (OTCMKTS:LYSDY) Critical Analysis

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

Valuation & Earnings

This table compares Lynas Rare Earths and Energy Fuels”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	$303.78 million	12.58	$55.42 million	N/A	N/A
Energy Fuels	$38.66 million	29.20	$99.86 million	($0.22)	-26.09

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

Profitability

This table compares Lynas Rare Earths and Energy Fuels’ 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
Energy Fuels	-90.40%	-9.16%	-8.67%

Analyst Ratings

This is a breakdown of recent recommendations for Lynas Rare Earths and Energy Fuels, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lynas Rare Earths	0	1	0	0	2.00
Energy Fuels	0	2	2	0	2.50

Energy Fuels has a consensus target price of $8.50, indicating a potential upside of 48.08%. Given Energy Fuels’ stronger consensus rating and higher possible upside, analysts plainly believe Energy Fuels is more favorable than Lynas Rare Earths.

Institutional & Insider Ownership

48.2% of Energy Fuels shares are held by institutional investors. 1.9% of Energy Fuels shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Lynas Rare Earths has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Energy Fuels has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500.

Summary

Energy Fuels beats Lynas Rare Earths on 8 of the 12 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 Energy Fuels

Energy Fuels Inc., together with its subsidiaries, engages in the extraction, recovery, recycling, exploration, permitting, evaluation, and sale of uranium mineral properties in the United States. The company produces and sells vanadium pentoxide, rare earth elements, and heavy mineral sands, such as ilmenite, rutile, zircon, and monazite. The company was formerly known as Volcanic Metals Exploration Inc. and changed its name to Energy Fuels Inc. in May 2006. Energy Fuels Inc. was incorporated in 1987 and is headquartered in Lakewood, Colorado.