MP Materials (MP Quick QuoteMP - Free Report) and Energy Fuels Inc. (UUUU Quick QuoteUUUU - Free Report) are key U.S. players in the critical minerals supply chain, with significant exposure to rare earth elements (REE) and strong ties to U.S. efforts to secure domestic mineral production. While MP Materials focuses primarily on rare earth mining and magnet production, Energy Fuels combines uranium production with an expanding rare earths business.

REEs being critical inputs across many existing and emerging clean-tech applications, their demand is expected to increase manifold. For investors seeking to capitalize on this growth, the question is which stock they should put their bets on. To make an informed decision, let us analyze their fundamentals, growth potential and key challenges for MP and UUUU.

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 Energy Fuels

Energy Fuels has produced nearly two-thirds of all uranium in the United States since 2017 and continues to scale uranium production as well as develop REE capabilities, backed by its debt-free balance sheet. 

During the first quarter of 2026, Energy Fuels mined ore containing approximately 425,000 pounds of uranium. First-quarter 2026 revenues surged 112% year over year to $35.8 million, primarily driven by uranium sales. During the quarter, UUUU sold 510,000 pounds of uranium at an average realized price of $70.04 per pound.

Costs applicable to revenues rose 18.5% due to higher uranium sales volumes and elevated production costs. Exploration, development and processing expenses climbed 24% year over year because of increased activity at the White Mesa Mill and the Bahia Project. Standby costs jumped 79% as the company advanced permitting and development work at the Roca Honda Project. Selling, general and administrative expenses increased 8% due to higher headcount and compensation costs.

The increase in operating costs was somewhat offset by higher uranium revenues and an increase in other income, resulting in a loss of four cents per share in the quarter, narrower than the year-ago loss of 13 cents per share.

UUUU expects to mine 2-2.5 million pounds of uranium in 2026, and process between 1.5 million and 2.5 million pounds of finished uranium. It also plans to sell 1.5-2 million pounds of uranium under existing contracts and spot market sales. The company recently announced that it expects finished uranium production at the White Mesa Mill to reach approximately 1.6 million pounds by June 30, 2026, higher than the lower end of its full-year production expectations. 

The company commenced processing low-cost Pinyon Plain mine ores in the fourth quarter of 2025. This is expected to result in costs of goods sold declining to the $30-$40 per pound range during the remainder of 2026 and boost its margins.

The company has six uranium supply contracts with U.S. nuclear utilities covering deliveries from 2027 to 2032, with potential total deliveries ranging from 2.59 million to 4.41 million pounds, depending on customer options. 

Energy Fuels continues to advance a deep pipeline of uranium projects. The Whirlwind mine and Nichols Ranch ISR project alone could add up to 500,000 pounds of annual uranium production within a year of a development decision. Other major projects, including Roca Honda, Bullfrog and Sheep Mountain, collectively contain nearly 70 million pounds of uranium resources.

Beyond uranium, the company continues to advance its rare earth strategy. During the first quarter, Energy Fuels announced successful pilot-scale production of high-purity terbium oxide at the White Mesa Mill, marking the first U.S. primary production of this critical heavy rare earth element in decades. Its proposed acquisition of Australian Strategic Materials is expected to strengthen its position as a fully integrated rare earth “mine-to-metal and alloy” producer outside China. UUUU outlined plans for two expansion phases at the White Mesa Mill that will boost total NdPr production capacity from the current level of 1,000 tons per annum (tpa) to approximately 6,229 tpa, in addition to roughly 80 tpa of terbium and 288 tpa of dysprosium.

How do Estimates Compare for MP & UUUU?

The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at 16 cents per share, indicating a solid improvement from the loss of 24 cents in 2025. The estimate for 2027 is $1.06 per share, indicating a 562.5% year-over-year improvement.

The Zacks Consensus Estimate for Energy Fuels’ 2026 earnings is pegged at a loss of 14 cents, narrower than the loss of 38 cents reported in 2025. The Zacks Consensus Estimate for UUUU’s earnings for 2027 is six cents per share.

Image Source: Zacks Investment Research

The earnings estimates for MP Materials for both 2026 and 2027 have moved down over the past 60 days. The estimates for Energy Fuels for 2026 and 2027 have also been revised downward. This is shown in the chart below. 

Image Source: Zacks Investment Research

MP & UUUU: Price Performance & Valuation

MP Materials stock has gained 12.9% year-to-date compared with Energy Fuels’ 5.5% rise.

Image Source: Zacks Investment Research

MP Materials is trading at a forward 12-month price-to-sales ratio of 16.73X. Energy Fuels is currently trading higher at a forward 12-month price-to-sales ratio of 21.17X. 

Image Source: Zacks Investment Research

Energy Fuels or MP Materials: Which Stock is the Better Pick?

MP Materials continues to post robust production growth as it executes on its vertical integration strategy. As the only fully integrated rare earth producer in the United States, the company is well-positioned to benefit from strategic partnerships and government support, strengthening its long-term growth prospects.

Energy Fuels, meanwhile, provides investors with diversified exposure to both the uranium and rare earth markets, two sectors poised for significant growth. However, the company's projected losses for the current year, coupled with downward earnings estimate revisions and a richer valuation, make the stock less attractive at this time.

MP Materials currently holds a Zacks Rank #3 (Hold), while Energy Fuels carries a Zacks Rank #4 (Sell).

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