USA Rare Earth Inc. (USAR) vs VALE S.A. (VALE)

USA Rare Earth Inc. 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 $4.2B — 12.7× the size. USA Rare Earth Inc. has negative trailing earnings, so its P/E is not meaningful; VALE S.A. trades at 26.7×. VALE S.A. has the higher net margin (5.11% vs 0.00%) and the higher return on invested capital (7.97% vs −7.78%). Across the 13 metrics below, VALE S.A. leads on 10 and USA Rare Earth Inc. on 3.

Valuation

Metric USAR VALE Other Industrial Metals & Mining median
P/E n/m 26.65 26.65
P/S n/m 1.35 6.78
P/B 0.96 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 n/m 1.66 4.64
Earnings yield (23.06%) 3.75% (9.58%)
Free cash flow yield (10.12%) 6.39% (8.41%)

Profitability

Metric USAR VALE Other Industrial Metals & Mining median
Gross margin — 34.82% 14.52%
Operating margin 0.00% 16.06% 0.00%
Net margin 0.00% 5.11% 0.00%
Free cash flow margin 0.00% 8.62% 0.00%
Return on equity (23.63%) 5.31% (7.90%)
Return on assets (17.88%) 2.35% (11.61%)
Return on invested capital (7.78%) 7.97% (3.47%)

Growth

Metric USAR VALE Other Industrial Metals & Mining median
Revenue growth (TTM) — 12.67% 27.25%
EPS growth (last fiscal year) (1,102.32%) (61.81%) (15.57%)
Revenue growth, 5-year CAGR — (0.58%) 5.26%
Net income growth, 5-year CAGR — (13.59%) 0.00%

Health

Metric USAR VALE Other Industrial Metals & Mining median
Debt to equity 0.00 0.48 0.04
Current ratio 32.79 1.19 2.48
Net debt to EBITDA 6.20 1.23 1.07

Dividend

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

Size

Metric USAR VALE Other Industrial Metals & Mining median
Market cap 4.16b 53.02b 454.02m

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