Critical Review: Avino Silver & Gold Mines (NYSE:ASM) & MP Materials (NYSE:MP)

Avino Silver & Gold Mines (NYSE:ASM) and MP Materials (NYSE:MP) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, earnings, institutional ownership, profitability, risk, dividends and analyst recommendations.

Profitability

This table compares Avino Silver & Gold Mines and MP Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avino Silver & Gold Mines	6.57%	12.13%	10.16%
MP Materials	-32.09%	-8.44%	-3.98%

Insider and Institutional Ownership

3.1% of Avino Silver & Gold Mines shares are held by institutional investors. Comparatively, 52.5% of MP Materials shares are held by institutional investors. 4.3% of Avino Silver & Gold Mines shares are held by insiders. Comparatively, 12.6% of MP Materials shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Avino Silver & Gold Mines and MP Materials”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avino Silver & Gold Mines	$66.18 million	3.73	$540,000.00	$0.05	35.00
MP Materials	$203.86 million	21.59	$24.31 million	($0.59)	-45.65

MP Materials has higher revenue and earnings than Avino Silver & Gold Mines. MP Materials is trading at a lower price-to-earnings ratio than Avino Silver & Gold Mines, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Avino Silver & Gold Mines and MP Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avino Silver & Gold Mines	0	0	3	0	3.00
MP Materials	0	4	6	0	2.60

Avino Silver & Gold Mines currently has a consensus target price of $2.07, suggesting a potential upside of 18.10%. MP Materials has a consensus target price of $22.45, suggesting a potential downside of 16.64%. Given Avino Silver & Gold Mines’ stronger consensus rating and higher possible upside, equities analysts clearly believe Avino Silver & Gold Mines is more favorable than MP Materials.

Volatility & Risk

Avino Silver & Gold Mines has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, MP Materials has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500.

About Avino Silver & Gold Mines

Avino Silver & Gold Mines Ltd. engages in the mining and exploration activities. It focuses on silver reserves in the Durango region of North Central Mexico. It operates through the Silver, Gold, and Copper segments. The company was founded on May 15, 1968 and is headquartered in Vancouver, Canada.

About MP Materials

MP Materials Corp., together with its subsidiaries, produces rare earth materials. The company owns and operates the Mountain Pass Rare Earth mine and processing facility in North America. It holds the mineral rights to the Mountain Pass mine and surrounding areas, as well as intellectual property rights related to the processing and development of rare earth minerals. The company was founded in 2017 and is headquartered in Las Vegas, Nevada.