MP vs. LYSDY: Which Rare Earth Stock is the Better Buy Now?

Core Insights - MP Materials and Lynas Rare Earths Limited are leading integrated rare earth producers, crucial for supplying minerals for EVs, defense, and high-tech applications, and are expected to play significant roles in diversifying global supply chains [1] Company Overview - MP Materials, based in Las Vegas, NV, is the only fully integrated rare earth producer in the U.S., with a market capitalization of $11.35 billion, covering the entire supply chain from mining to magnet manufacturing [2] - Lynas, based in Perth, Australia, has a market capitalization of approximately $6.64 billion and is involved in the exploration, development, and processing of rare earth minerals in Australia and Malaysia [2] Financial Performance - MP Materials reported a 25% year-over-year revenue increase to $60.8 million in Q1 2025, with record NdPr production of 563 metric tons, a 330% increase from the previous year [5] - Lynas achieved record NdPr production of 2,080 tons in Q4 2025, with total REO production at 3,212 tons and a 38% year-over-year revenue growth to AUD$170.2 million ($110.61 million) [15] Production and Operations - MP Materials operates the Mountain Pass Rare Earth Mine, the only large-scale rare earth mining and processing site in North America, and plans to produce approximately 1,000 metric tons of finished NdFeB magnets annually [4] - Lynas processes concentrate from its Mt Weld mine at facilities in Australia and is building a new processing facility in Texas [14] Strategic Developments - MP Materials halted rare earth concentrate shipments to China due to tariffs and export controls, which previously accounted for about 50% of its revenues [7] - MP has signed a MoU with Saudi Arabian mining company Maaden to develop a fully integrated rare earth supply chain in Saudi Arabia [8] - Lynas has established partnerships for developing rare earth deposits and a new magnet manufacturing facility in Malaysia [17] Future Outlook - MP Materials is expected to incur a loss in the current fiscal year due to elevated costs, despite strong production numbers and investments in capacity [25] - Lynas is projected to have improved financial performance with strong growth projections and upward estimate revisions [25] Valuation and Market Performance - MP Materials stock has surged 311% year-to-date, while Lynas has risen by 79% [21] - MP is trading at a forward price-to-sales ratio of 24.73X, significantly higher than the industry average of 1.24X, while Lynas is at 11.58X [22]