Materion Corporation (MTRN) vs USA Rare Earth Inc. (USAR)

Materion Corporation and USA Rare Earth Inc. are both Other Industrial Metals & Mining companies. Materion Corporation is the larger, with a market value of $5.3B against $4.2B — 1.3× the size. USA Rare Earth Inc. has negative trailing earnings, so its P/E is not meaningful; Materion Corporation trades at 56.3×. Materion Corporation has the higher net margin (4.29% vs 0.00%) and the higher return on invested capital (5.50% vs −7.78%). Across the 13 metrics below, Materion Corporation leads on 10 and USA Rare Earth Inc. on 3.

Valuation

Metric MTRN USAR Other Industrial Metals & Mining median
P/E 56.26 n/m 26.65
P/S 2.42 n/m 6.78
P/B 5.11 0.96 1.18
Price to free cash flow 99.92 n/m 15.65
EV/EBITDA 27.71 n/m 7.09
EV/Sales 2.63 n/m 4.64
Earnings yield 1.78% (23.06%) (9.58%)
Free cash flow yield 1.00% (10.12%) (8.41%)

Profitability

Metric MTRN USAR Other Industrial Metals & Mining median
Gross margin 16.01% — 14.52%
Operating margin 5.99% 0.00% 0.00%
Net margin 4.29% 0.00% 0.00%
Free cash flow margin 2.42% 0.00% 0.00%
Return on equity 9.46% (23.63%) (7.90%)
Return on assets 4.99% (17.88%) (11.61%)
Return on invested capital 5.50% (7.78%) (3.47%)

Growth

Metric MTRN USAR Other Industrial Metals & Mining median
Revenue growth (TTM) 21.60% — 27.25%
EPS growth (last fiscal year) 1,178.57% (1,102.32%) (15.57%)
Revenue growth, 5-year CAGR 8.72% — 5.26%
Net income growth, 5-year CAGR 37.07% — 0.00%

Health

Metric MTRN USAR Other Industrial Metals & Mining median
Debt to equity 0.46 0.00 0.04
Current ratio 2.94 32.79 2.48
Net debt to EBITDA 2.54 6.20 1.07

Dividend

Metric MTRN USAR Other Industrial Metals & Mining median
Dividend yield 0.23% — 1.46%
Payout ratio 0.13 — —

Size

Metric MTRN USAR Other Industrial Metals & Mining median
Market cap 5.25b 4.16b 454.02m

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