MP Materials Corp. (MP) vs VALE S.A. (VALE)

MP Materials Corp. and VALE S.A. are both Other Industrial Metals & Mining companies. VALE S.A. is the larger, with a market value of $53.0B against $7.4B — 7.2× the size. MP Materials Corp. has negative trailing earnings, so its P/E is not meaningful; VALE S.A. trades at 26.7×. MP Materials Corp. grew revenue faster over the last twelve months: 71.9% against 12.7%. VALE S.A. has the higher net margin (5.11% vs −14.6%) and the higher return on invested capital (7.97% vs −4.28%). Across the 19 metrics below, VALE S.A. leads on 12 and MP Materials Corp. on 7.

Valuation

Metric MP VALE Other Industrial Metals & Mining median
P/E n/m 26.65 26.65
P/S 17.22 1.35 6.78
P/B 3.66 1.43 1.18
Price to free cash flow n/m 15.65 15.65
EV/EBITDA n/m 6.86 7.09
EV/Sales 16.14 1.66 4.64
Earnings yield (0.85%) 3.75% (9.58%)
Free cash flow yield (7.04%) 6.39% (8.41%)

Profitability

Metric MP VALE Other Industrial Metals & Mining median
Gross margin 42.33% 34.82% 14.52%
Operating margin (30.48%) 16.06% 0.00%
Net margin (14.56%) 5.11% 0.00%
Free cash flow margin (121.22%) 8.62% 0.00%
Return on equity (4.08%) 5.31% (7.90%)
Return on assets (2.00%) 2.35% (11.61%)
Return on invested capital (4.28%) 7.97% (3.47%)

Growth

Metric MP VALE Other Industrial Metals & Mining median
Revenue growth (TTM) 71.92% 12.67% 27.25%
EPS growth (last fiscal year) (29.84%) (61.81%) (15.57%)
Revenue growth, 5-year CAGR 15.45% (0.58%) 5.26%
Net income growth, 5-year CAGR 0.00% (13.59%) 0.00%

Health

Metric MP VALE Other Industrial Metals & Mining median
Debt to equity 0.39 0.48 0.04
Current ratio 9.51 1.19 2.48
Net debt to EBITDA 13.83 1.23 1.07

Dividend

Metric MP VALE Other Industrial Metals & Mining median
Dividend yield — 3.06% 1.46%
Payout ratio — 0.82 —

Size

Metric MP VALE Other Industrial Metals & Mining median
Market cap 7.41b 53.02b 454.02m

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