MP vs. IDR: Which Rare Earth Stock is the Smarter Buy Now?

Core Insights - MP Materials and Idaho Strategic Resources are key players in the U.S. critical minerals sector, focusing on rare earth elements and gold production respectively [2][3][4]. MP Materials - MP Materials is the largest producer of rare earth materials in the Western Hemisphere, with a market capitalization of $12.4 billion [2]. - In Q2 2025, MP Materials reported revenues of $57.4 million, an 84% increase year-over-year, driven by a 119% increase in NdPr production [5]. - The company produced 597 metric tons of NdPr and 13,145 metric tons of rare earth oxides, marking a 45% increase in REO production [5]. - The Materials segment's revenues rose 20% to $37.5 million, while the Magnetics segment generated $19.9 million in revenues [6]. - Despite revenue growth, MP Materials reported a loss of 13 cents per share due to higher production costs and expenses, compared to a loss of 17 cents in Q2 2024 [7]. - A significant long-term agreement with Apple to supply rare earth magnets from recycled materials was announced in July [8]. - MP Materials is collaborating with the U.S. Department of Defense to develop a domestic rare earth magnet supply chain, with plans for a new manufacturing facility [9]. - As of December 31, 2024, MP Materials' proven and probable reserves were estimated at 2.04 million short tons of REO, with a mine life of 29 years [10][11]. - The stock has surged 348% year-to-date, reflecting strong market performance [10][22]. - The Zacks Consensus Estimate for fiscal 2025 earnings is a loss of 32 cents per share, with a projected return to profitability in fiscal 2026 [19]. Idaho Strategic Resources - Idaho Strategic Resources is a gold producer with a market capitalization of approximately $385 million, owning the largest rare earth elements land package in the U.S. [3]. - In Q2 2025, Idaho Strategic's revenues increased 54.7% to $9.5 million, driven by a 57.7% rise in average realized gold prices [15]. - The company produced 3,010 ounces of gold, a 3.7% increase, and reported earnings of 20 cents per share, up 17.65% [15]. - Exploration costs surged by 262%, impacting earnings despite revenue growth [16]. - Idaho Strategic is planning its largest exploration program to date in 2025, focusing on REE and thorium [14][18]. - The company signed a memorandum of understanding with Clean Core Thorium Energy to explore thorium mining and processing [17]. - The Zacks Consensus Estimate for fiscal 2025 earnings is 76 cents per share, indicating a year-over-year increase of 13.4% [20]. Comparative Analysis - MP Materials is trading at a forward price-to-sales ratio of 24.59X, while Idaho Strategic is at 11.05X, indicating a premium valuation for MP [24]. - Both companies are ranked 2 (Buy) by Zacks, making the choice between them challenging [26]. - MP Materials is recognized for its strong production results and strategic partnerships, while Idaho Strategic offers unique exposure to both gold and rare earths [25][27].