MP Materials (MP Quick QuoteMP - Free Report) and Idaho Strategic Resources (IDR Quick QuoteIDR - Free Report) are two prominent players in the U.S. critical minerals sector. 
Las Vegas, NV-based MP Materials, with a market capitalization of around $11 billion, is currently the only fully integrated rare earth producer in the United States. Its operations span the entire value chain, from mining and processing to metallization and magnet manufacturing.

Coeur d'Alene-based Idaho Strategic Resources, with a market capitalization of around $590 million, is primarily a gold producer but also owns the largest rare-earth elements (REE) land package in the United States. Its key REE projects, Mineral Hill, Lemhi Pass and Diamond Creek, remain in the exploration stage.

Rare earth elements are essential for electric vehicles, defense systems and other advanced technologies. With China dominating the global supply, the United States is prioritizing the development of a domestic rare-earth supply chain, positioning both companies as potential long-term beneficiaries. For investors seeking exposure to this theme, the question is which stock currently offers the stronger opportunity.

The Case for MP Materials

MP Materials operates the Mountain Pass mine and processing facility, producing refined rare-earth products, concentrates and related materials. It also owns the Independence facility in Fort Worth, TX, where it manufactures magnetic precursor products and began producing neodymium-iron-boron (NdFeB) permanent magnets in December 2025.

The company made significant strategic progress in 2025, including a long-term agreement to supply U.S.-made recycled rare-earth magnets to Apple and a public-private partnership with the U.S. Department of War (DoW) aimed at accelerating a domestic magnet supply chain. 

Backed by government incentives, the company is constructing the second domestic magnet manufacturing facility (the 10X Facility) in Northlake, TX, which will lift its total U.S. magnet capacity to 10,000 metric tons. MP is also expanding operations at Independence and scaled heavy rare earth separation commissioning activities are set to begin soon at Mountain Pass. 

Operationally, MP continues to scale production and downstream manufacturing capabilities. In first-quarter 2026, the company produced a record 917 metric tons of NdPr, up 63% year over year, driven by higher separated-product output. Rare-earth oxide concentrate production also reached a quarterly record of 12,983 metric tons, up 6% year over year due to improved recoveries and operational efficiencies.

Total company revenues rose 49% year over year to $90.6 million in the quarter, supported by stronger performance in both the Materials and Magnetics segments. MP also recognized $42.3 million in income related to its price protection agreement with the DoW.

However, profitability remains under pressure as the company transitions toward higher-value separated rare-earth products and magnetic materials. Cost of sales increased 52% in the quarter, while SG&A expenses rose 39%. Start-up costs surged more than 500% due to magnet production and chlor-alkali facility ramp ups, while advanced project and development expenses climbed 302%. 

MP Materials reported an operating loss of $24 million in the first quarter of 2026 compared with the year-ago loss of $34.8 million. The company reported adjusted earnings of three cents per share against the year-ago quarter’s loss of 12 cents. Looking ahead, the company expects additional cost pressures as production scales. Start-up costs are also likely to increase further in the coming quarters.

The Case for Idaho Strategic Resources

Idaho Strategic operates the producing Golden Chest gold mine and holds a majority ownership interest in the New Jersey Mill, along with several exploration-stage gold properties. The company’s strategy centers on growing production at Golden Chest while reinvesting cash flow into both gold and REE exploration projects.

The company expanded into rare earths to diversify its asset base and capitalize on growing demand. To date, Idaho Strategic has conducted numerous exploration programs on its REE properties, which include mapping, sampling, trenching and drilling of certain areas within its 21,385-acre landholdings.

In the first quarter, IDR’s total revenues rose 99% to $14.5 million attributed to a 97% spike in average realized prices of gold. Cost of sales were up 37% while operating expenses declined 17%. Operating income surged 441% to $7.6 million. Earnings per share were at 40 cents, a solid improvement from 12 cents in the year-ago quarter. 

The Golden Chest Mine produced 3,234 ounces of gold in the first quarter of 2026. Exploration activity remained active, with roughly 8,700 meters of drilling completed across several targets, including Paymaster, Red Star, Katie-Dora and the H-vein. The company also stated that permitting is in place for drill programs this year at two projects in the Murray Gold Belt (Little Baldy and Niagara) and at two of its REE prospects (Lucky Horseshoe at Lemhi Pass and Cardinal at Mineral Hill) near Salmon.

IDR also secured an important milestone on the rare-earth front. One of its proposals submitted under the Department of Energy’s Funding Opportunity 3105 for critical material innovation was selected for funding. The project, developed alongside the University of Idaho, Idaho National Laboratory and Idaho Geological Survey, focuses on innovative low-emission manufacturing pathways for Idaho-sourced rare-earth metals. The initiative received the maximum possible award of $1 million under Topic Area 3, which supports early-stage, high-impact critical minerals technologies. The company said that the project fits well within its proposed rare earth elements work season during 2026.

Idaho Strategic expects exploration spending to remain elevated, or even increase, as it continues to develop the Golden Chest mine and other properties.

The company continues to pursue additional partnerships to support the development of a domestic REE supply chain. It has an MoU in place with Clean Core Thorium Energy, Inc. (“CCTE”) to advance a domestic thorium nuclear fuel supply chain. CCTE is advancing its patented ANEEL fuel, which is an advanced nuclear fuel comprised of thorium and high-assay low-enriched uranium for use in pressurized heavy water reactors.    
Idaho Strategic benefits from improving cash flow and relatively low debt levels, giving it flexibility to fund ongoing gold production growth and REE development efforts.

How do Estimates Compare for MP & IDR?

The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at 26 cents per share, indicating a solid improvement from the loss of 24 cents in 2025. The estimate for 2027 is $1.16 per share, indicating a 347% year-over-year improvement.

The Zacks Consensus Estimate for Idaho Strategic’s 2026 earnings is $1.52 per share, indicating a year-over-year increase of 33.3%. The 2027 estimate implies a dip of 0.7%.

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For MP Materials, the estimate for 2026 has moved south over the past 60 days, while the same for 2027 has moved upward.  For Idaho Strategic, the estimates for 2026 have moved up over the past 60 days while the estimate for 2027 has remained unchanged.

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MP & IDR: Price Performance & Valuation

In a year’s time, MP Materials stock has gained 213.6% compared with Idaho Strategic’s 176.7% rise. 

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MP Materials is currently trading at a forward 12-month price-to-sales ratio of 18.84X. Meanwhile, Idaho Strategic is trading lower at a forward 12-month price-to-sales ratio of 11.50X.

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MP Materials or Idaho Strategic: Which Stock is the Better Buy?

MP Materials remains the clear leader in the U.S. rare-earth industry, backed by integrated operations, rising production capacity and strategic partnerships with Apple and the U.S. government. Its long-term growth outlook is compelling as the domestic rare-earth supply chain expands. However, near-term profitability remains challenged by high operating and expansion costs.

Idaho Strategic, meanwhile, combines profitable gold production with early-stage rare-earth exploration, providing diversification and exposure to two favorable commodity themes. Its recent DoW funding award also validates its growing role in domestic REE development. With stronger near-term earnings momentum, lower valuation and a Zacks Rank #1 (Strong Buy), IDR appears more attractive for investors. MP Materials currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank stocks here.