MP Materials Corp. (MP) vs Rio Tinto PLC (RIO)

MP Materials Corp. and Rio Tinto PLC are both Other Industrial Metals & Mining companies. Rio Tinto PLC is the larger, with a market value of $104.3B against $6.0B — 17.4× the size. MP Materials Corp. has negative trailing earnings, so its P/E is not meaningful; Rio Tinto PLC trades at 5.2×. MP Materials Corp. grew revenue faster over the last twelve months: 26.1% against 9.45%. Rio Tinto PLC has the higher net margin (23.1% vs −19.9%) and the higher return on invested capital (0.00% vs −4.28%). Across the 17 metrics below, Rio Tinto PLC leads on 12 and MP Materials Corp. on 5.

Valuation

Metric MP RIO Other Industrial Metals & Mining median
P/E n/m 5.23 22.71
P/S 19.86 n/m 5.39
P/B 3.10 n/m 1.39
Price to free cash flow n/m n/m 14.19
EV/EBITDA n/m 0.26 5.51
EV/Sales 18.39 0.12 4.77
Earnings yield (1.00%) 19.12% (11.17%)
Free cash flow yield (8.32%) 0.00% (7.91%)

Profitability

Metric MP RIO Other Industrial Metals & Mining median
Gross margin 57.69% 36.19% 14.48%
Operating margin (41.54%) 0.00% 0.00%
Net margin (19.85%) 23.14% 0.00%
Free cash flow margin (165.23%) 0.00% 0.00%
Return on equity (4.08%) 0.00% (6.24%)
Return on assets (2.00%) 0.00% (14.10%)
Return on invested capital (4.28%) 0.00% (3.57%)

Growth

Metric MP RIO Other Industrial Metals & Mining median
Revenue growth (TTM) 26.13% 9.45% 28.07%
EPS growth (last fiscal year) 12.28% (14.00%) (14.00%)
Revenue growth, 5-year CAGR 10.82% 5.26% 6.99%
Net income growth, 5-year CAGR 0.00% 0.40% 0.00%

Health

Metric MP RIO Other Industrial Metals & Mining median
Debt to equity 0.39 0.31 0.04
Current ratio 9.51 1.42 2.53
Net debt to EBITDA 13.83 0.62 1.03

Dividend

Metric MP RIO Other Industrial Metals & Mining median
Dividend yield — 5.57% 2.31%
Payout ratio — — 0.12

Size

Metric MP RIO Other Industrial Metals & Mining median
Market cap 6.01b 104.34b 433.17m

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