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 $46.6B against $6.0B — 7.8× the size. MP Materials Corp. has negative trailing earnings, so its P/E is not meaningful; VALE S.A. trades at 76.4×. MP Materials Corp. grew revenue faster over the last twelve months: 26.1% against 10.5%. VALE S.A. has the higher net margin (1.64% vs −19.9%) and the higher return on invested capital (6.58% 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 76.40 22.71
P/S 19.86 1.18 5.39
P/B 3.10 1.27 1.39
Price to free cash flow n/m 14.19 14.19
EV/EBITDA n/m 6.89 5.51
EV/Sales 18.39 1.49 4.77
Earnings yield (1.00%) 1.31% (11.17%)
Free cash flow yield (8.32%) 7.05% (7.91%)

Profitability

Metric MP VALE Other Industrial Metals & Mining median
Gross margin 57.69% 31.94% 14.48%
Operating margin (41.54%) 13.10% 0.00%
Net margin (19.85%) 1.64% 0.00%
Free cash flow margin (165.23%) 8.32% 0.00%
Return on equity (4.08%) 1.68% (6.24%)
Return on assets (2.00%) 0.76% (14.10%)
Return on invested capital (4.28%) 6.58% (3.57%)

Growth

Metric MP VALE Other Industrial Metals & Mining median
Revenue growth (TTM) 26.13% 10.54% 28.07%
EPS growth (last fiscal year) 12.28% (61.81%) (14.00%)
Revenue growth, 5-year CAGR 10.82% (0.58%) 6.99%
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 0.47 0.04
Current ratio 9.51 1.10 2.53
Net debt to EBITDA 13.83 1.23 1.03

Dividend

Metric MP VALE Other Industrial Metals & Mining median
Dividend yield — 3.49% 2.31%
Payout ratio — 2.67 0.12

Size

Metric MP VALE Other Industrial Metals & Mining median
Market cap 6.01b 46.63b 433.17m

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