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UUUU vs. MP: Which Rare Earth Stock is a Better Pick Now?
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Key Takeaways
Energy Fuels is scaling uranium and rare-earth production while expanding across the supply chain.
MP Materials is boosting NdPr output and magnet capacity as downstream manufacturing ramps.
Both face higher costs and lower earnings estimates, with expansion plans requiring significant capital.
Energy Fuels Inc. (UUUU - Free Report) and MP Materials (MP - Free Report) are US-based critical-minerals companies seeking to strengthen domestic supply chains and reduce reliance on China.
Energy Fuels is a leading U.S. producer of uranium and owns the White Mesa Mill in Utah, the only fully licensed conventional uranium mill operating in the United States. The facility also produces rare earth element (REE) products and evaluates medical isotope recovery for emerging cancer therapies. MP Materials is the largest rare-earth producer in the Western Hemisphere. It owns and operates the Mountain Pass Rare Earth Mine and Processing Facility in California, the only rare-earth mine and processing site of scale in North America.
REEs are used in a variety of energy, advanced and defense technologies, including powerful magnets used in EVs and hybrid EVs, advanced robotics, wind energy and several defense technologies. With demand expected to rise significantly, both companies are expanding their positions across the rare-earth value chain.
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 UUUU and MP.
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.
In the second quarter of 2026, Energy Fuels mined ore containing 315,000 pounds of uranium and produced 865,000 pounds of finished uranium. This takes the total to 1.7 million pounds of finished uranium for the first half, already exceeding the low end of its full-year guidance of 1.5-2.5 million pounds.
Energy Fuels is also making progress in rare earths. In March 2026, the company successfully produced terbium (Tb) oxide at pilot scale, becoming the first U.S. company in decades to achieve the milestone. In August, UUUU announced that its terbium oxide had been qualified by one of the world's largest rare-earth permanent magnet manufacturers outside China.
Energy Fuels’ second-quarter revenues jumped 496% year over year to $25.1 million, driven by higher uranium sales volumes and realized prices. The company sold 310,000 pounds of uranium at an average realized price of $80.48 per pound compared with 50,000 pounds at $77 per pound in the year-ago quarter.
Costs applicable to revenues surged 192% to $10.7 million on higher uranium volumes sold, partially offset by lower weighted average cost per pound of uranium sold. Standby costs surged 61% year over year due to higher permitting activities at Roca Honda and Whirlwind and increased maintenance activities at Nichols Ranch. Selling, general and administration were up 31% year over year, reflecting increases in general headcount, salaries and benefits. UUUU also incurred $10.7 million in transaction and integration costs. The company reported a net loss of 13 cents per share in the quarter, wider than the year-ago quarter’s loss of 10 cents per share.
UUUU expects to mine 2-2.5 million pounds of contained uranium in 2026 and sell 1.5-2 million pounds through spot and contracted transactions. The company has six uranium supply contracts with U.S. nuclear utilities with deliveries extending to 2032. As of June 30, 2026, contracted volumes totaled 3.20 million base pounds, with minimum and maximum deliveries of 2.77 million and 4.72 million pounds, respectively.
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.
On the rare-earth front, UUUU has begun an expansion of its White Mesa Mill to enable the large-scale production of heavy rare earth oxides. Its acquisition of Australian Strategic Materials (ASM) adds the Korean Metals Plant in Ochang, South Korea, which has the current capacity to produce 1,300 tons of neodymium-iron-boron (NdFeB) alloy annually. Expansion is underway to increase NdFeB alloy capacity at the Korean Metals Plant to 3,600 tons per year.
The plant also possesses commercial metallization capabilities for neodymium-praseodymium (NdPr) and is developing metallization capabilities for dysprosium (Dy) and Tb. This complements Energy Fuels' NdPr, Tb and Dy oxide production and expansion initiatives at its White Mesa Mill in Utah.
Energy Fuels is also seeking to move further downstream through its planned acquisition of permanent magnet manufacturer Vacuumschmelze (“VAC”), announced in June 2026. If completed, potentially as early as the first quarter of 2027, the deal would give UUUU exposure across a broader portion of the rare-earth value chain, from mineral resources and processing to finished magnetic products.
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 permanent magnets in December 2025.
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 continues to scale production and downstream manufacturing capabilities. NdPr production increased 41% year over year to 840 metric tons in the second quarter of 2026 despite a scheduled semiannual maintenance outage at Mountain Pass. Management expects third-quarter 2026 NdPr production to exceed 1,000 metric tons as throughput and plant reliability improve.
MP Materials remains on track to begin producing Tb and Dy later this year, while first samarium production is targeted for 2028. The company recently entered into a multiyear agreement to supply gadolinium oxide to a leading U.S. aerospace and defense manufacturer.
Meanwhile, MP is progressing with its magnet manufacturing operations. During the second quarter, MP Materials delivered magnets to General Motors Company (GM - Free Report) for in-vehicle qualification testing and expects to begin commercial shipments in the fourth quarter, followed by a steady production ramp.
MP reported an 89% year-over-year increase in second-quarter 2026 revenues to $108.5 million. The company also recorded $17.58 million in income tied to a price protection agreement (PPA) with the U.S. Department of War (DoW). Cost of sales, however, increased 43.3% year over year, and selling, general and administrative expenses rose 28.2%. Start-up costs surged to $14.4 million from $0.76 million in the year-ago quarter as MP advanced initial magnet production. MP reported an adjusted loss of one cent per share in the second quarter of 2026, a significant improvement from the loss of 13 cents in the year-ago quarter.
Looking ahead, the company expects additional cost pressures as production scales. Start-up costs are also likely to increase further in the coming quarters.
MP Materials has also worked with U.S. and allied drone manufacturers to launch Project Swarm, an industrial coordination initiative designed to aggregate and standardize future magnet demand. It has already signed subscription agreements with several participants. The company’s partnership with Apple Inc. (AAPL - Free Report) on magnet recycling, magnet production and joint development also continues to advance.
Meanwhile, construction of the 10X facility remains on track. The second U.S. rare earth magnet facility is expected to begin commissioning in 2028 and produce approximately 7,000 metric tons of magnets annually. Combined with the 3,000-metric-ton capacity of the Independence facility, MP’s U.S. magnet capacity is expected to reach 10,000 metric tons annually.
How do Estimates Compare for UUUU & MP?
The Zacks Consensus Estimate for Energy Fuels’ 2026 earnings is pegged at a loss of 25 cents, narrower than the loss of 38 cents reported in 2025. The consensus estimate for UUUU’s earnings for 2027 is three cents per share.
The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at eight cents per share, indicating a solid improvement from the loss of 24 cents in 2025. The estimate for 2027 is 88 cents per share, indicating a 1,009% year-over-year improvement.
Image Source: Zacks Investment Research
The earnings estimates for Energy Fuels for 2026 and 2027 have been revised downward over the past 60 days. The earnings estimates for MP Materials for both 2026 and 2027 have also moved down over the past 60 days. This is shown in the chart below.
Image Source: Zacks Investment Research
UUUU & MP: Price Performance & Valuation
Energy Fuels stock has declined 24.9% year-to-date compared with MP Materials’ 35.5% drop.
Image Source: Zacks Investment Research
Energy Fuels is currently trading at a forward 12-month price-to-sales ratio of 15.46X. MP Materials is trading at a forward 12-month price-to-sales ratio of 12.26X.
Image Source: Zacks Investment Research
Energy Fuels or MP Materials: Which Stock is the Better Pick?
Energy Fuels and MP Materials offer different ways to participate in the development of a U.S.-centered rare-earth supply chain. MP Materials has a more concentrated rare-earth strategy, with operations spanning mining, processing and magnet manufacturing. Its rising NdPr production, planned heavy rare-earth output and expanding magnet capacity provide multiple potential growth avenues. At the same time, the company remains loss-making and faces elevated start-up costs and significant capital requirements as it builds out its downstream operations.
Energy Fuels offers greater commodity diversification through its established uranium business while simultaneously building a rare-earth platform. Its uranium production and long-term utility contracts provide an existing revenue base, while acquisitions could extend its rare-earth exposure from processing into metals, alloys and permanent magnets. However, these initiatives also increase integration and capital requirements, and the contribution from its broader rare-earth strategy is likely to develop over time.
Given the downward revisions to earnings estimates and the risks associated with their respective expansion plans, investors may prefer to wait for improved earnings visibility and clearer execution milestones before taking positions. Energy Fuels carries a Zacks Rank #4 (Sell) while MP Materials currently holds a Zacks Rank #4 (Strong Sell).
View the Zacks #1 Rank List
Image: Bigstock
UUUU vs. MP: Which Rare Earth Stock is a Better Pick Now?
Key Takeaways
Energy Fuels Inc. (UUUU - Free Report) and MP Materials (MP - Free Report) are US-based critical-minerals companies seeking to strengthen domestic supply chains and reduce reliance on China.
Energy Fuels is a leading U.S. producer of uranium and owns the White Mesa Mill in Utah, the only fully licensed conventional uranium mill operating in the United States. The facility also produces rare earth element (REE) products and evaluates medical isotope recovery for emerging cancer therapies. MP Materials is the largest rare-earth producer in the Western Hemisphere. It owns and operates the Mountain Pass Rare Earth Mine and Processing Facility in California, the only rare-earth mine and processing site of scale in North America.
REEs are used in a variety of energy, advanced and defense technologies, including powerful magnets used in EVs and hybrid EVs, advanced robotics, wind energy and several defense technologies. With demand expected to rise significantly, both companies are expanding their positions across the rare-earth value chain.
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 UUUU and MP.
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.
In the second quarter of 2026, Energy Fuels mined ore containing 315,000 pounds of uranium and produced 865,000 pounds of finished uranium. This takes the total to 1.7 million pounds of finished uranium for the first half, already exceeding the low end of its full-year guidance of 1.5-2.5 million pounds.
Energy Fuels is also making progress in rare earths. In March 2026, the company successfully produced terbium (Tb) oxide at pilot scale, becoming the first U.S. company in decades to achieve the milestone. In August, UUUU announced that its terbium oxide had been qualified by one of the world's largest rare-earth permanent magnet manufacturers outside China.
Energy Fuels’ second-quarter revenues jumped 496% year over year to $25.1 million, driven by higher uranium sales volumes and realized prices. The company sold 310,000 pounds of uranium at an average realized price of $80.48 per pound compared with 50,000 pounds at $77 per pound in the year-ago quarter.
Costs applicable to revenues surged 192% to $10.7 million on higher uranium volumes sold, partially offset by lower weighted average cost per pound of uranium sold. Standby costs surged 61% year over year due to higher permitting activities at Roca Honda and Whirlwind and increased maintenance activities at Nichols Ranch. Selling, general and administration were up 31% year over year, reflecting increases in general headcount, salaries and benefits. UUUU also incurred $10.7 million in transaction and integration costs. The company reported a net loss of 13 cents per share in the quarter, wider than the year-ago quarter’s loss of 10 cents per share.
UUUU expects to mine 2-2.5 million pounds of contained uranium in 2026 and sell 1.5-2 million pounds through spot and contracted transactions. The company has six uranium supply contracts with U.S. nuclear utilities with deliveries extending to 2032. As of June 30, 2026, contracted volumes totaled 3.20 million base pounds, with minimum and maximum deliveries of 2.77 million and 4.72 million pounds, respectively.
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.
On the rare-earth front, UUUU has begun an expansion of its White Mesa Mill to enable the large-scale production of heavy rare earth oxides. Its acquisition of Australian Strategic Materials (ASM) adds the Korean Metals Plant in Ochang, South Korea, which has the current capacity to produce 1,300 tons of neodymium-iron-boron (NdFeB) alloy annually. Expansion is underway to increase NdFeB alloy capacity at the Korean Metals Plant to 3,600 tons per year.
The plant also possesses commercial metallization capabilities for neodymium-praseodymium (NdPr) and is developing metallization capabilities for dysprosium (Dy) and Tb. This complements Energy Fuels' NdPr, Tb and Dy oxide production and expansion initiatives at its White Mesa Mill in Utah.
Energy Fuels is also seeking to move further downstream through its planned acquisition of permanent magnet manufacturer Vacuumschmelze (“VAC”), announced in June 2026. If completed, potentially as early as the first quarter of 2027, the deal would give UUUU exposure across a broader portion of the rare-earth value chain, from mineral resources and processing to finished magnetic products.
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 permanent magnets in December 2025.
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 continues to scale production and downstream manufacturing capabilities. NdPr production increased 41% year over year to 840 metric tons in the second quarter of 2026 despite a scheduled semiannual maintenance outage at Mountain Pass. Management expects third-quarter 2026 NdPr production to exceed 1,000 metric tons as throughput and plant reliability improve.
MP Materials remains on track to begin producing Tb and Dy later this year, while first samarium production is targeted for 2028. The company recently entered into a multiyear agreement to supply gadolinium oxide to a leading U.S. aerospace and defense manufacturer.
Meanwhile, MP is progressing with its magnet manufacturing operations. During the second quarter, MP Materials delivered magnets to General Motors Company (GM - Free Report) for in-vehicle qualification testing and expects to begin commercial shipments in the fourth quarter, followed by a steady production ramp.
MP reported an 89% year-over-year increase in second-quarter 2026 revenues to $108.5 million. The company also recorded $17.58 million in income tied to a price protection agreement (PPA) with the U.S. Department of War (DoW). Cost of sales, however, increased 43.3% year over year, and selling, general and administrative expenses rose 28.2%. Start-up costs surged to $14.4 million from $0.76 million in the year-ago quarter as MP advanced initial magnet production. MP reported an adjusted loss of one cent per share in the second quarter of 2026, a significant improvement from the loss of 13 cents in the year-ago quarter.
Looking ahead, the company expects additional cost pressures as production scales. Start-up costs are also likely to increase further in the coming quarters.
MP Materials has also worked with U.S. and allied drone manufacturers to launch Project Swarm, an industrial coordination initiative designed to aggregate and standardize future magnet demand. It has already signed subscription agreements with several participants. The company’s partnership with Apple Inc. (AAPL - Free Report) on magnet recycling, magnet production and joint development also continues to advance.
Meanwhile, construction of the 10X facility remains on track. The second U.S. rare earth magnet facility is expected to begin commissioning in 2028 and produce approximately 7,000 metric tons of magnets annually. Combined with the 3,000-metric-ton capacity of the Independence facility, MP’s U.S. magnet capacity is expected to reach 10,000 metric tons annually.
How do Estimates Compare for UUUU & MP?
The Zacks Consensus Estimate for Energy Fuels’ 2026 earnings is pegged at a loss of 25 cents, narrower than the loss of 38 cents reported in 2025. The consensus estimate for UUUU’s earnings for 2027 is three cents per share.
The Zacks Consensus Estimate for MP Materials’ 2026 earnings is pegged at eight cents per share, indicating a solid improvement from the loss of 24 cents in 2025. The estimate for 2027 is 88 cents per share, indicating a 1,009% year-over-year improvement.
Image Source: Zacks Investment Research
The earnings estimates for Energy Fuels for 2026 and 2027 have been revised downward over the past 60 days. The earnings estimates for MP Materials for both 2026 and 2027 have also moved down over the past 60 days. This is shown in the chart below.
Image Source: Zacks Investment Research
UUUU & MP: Price Performance & Valuation
Energy Fuels stock has declined 24.9% year-to-date compared with MP Materials’ 35.5% drop.
Image Source: Zacks Investment Research
Energy Fuels is currently trading at a forward 12-month price-to-sales ratio of 15.46X. MP Materials is trading at a forward 12-month price-to-sales ratio of 12.26X.
Image Source: Zacks Investment Research
Energy Fuels or MP Materials: Which Stock is the Better Pick?
Energy Fuels and MP Materials offer different ways to participate in the development of a U.S.-centered rare-earth supply chain. MP Materials has a more concentrated rare-earth strategy, with operations spanning mining, processing and magnet manufacturing. Its rising NdPr production, planned heavy rare-earth output and expanding magnet capacity provide multiple potential growth avenues. At the same time, the company remains loss-making and faces elevated start-up costs and significant capital requirements as it builds out its downstream operations.
Energy Fuels offers greater commodity diversification through its established uranium business while simultaneously building a rare-earth platform. Its uranium production and long-term utility contracts provide an existing revenue base, while acquisitions could extend its rare-earth exposure from processing into metals, alloys and permanent magnets. However, these initiatives also increase integration and capital requirements, and the contribution from its broader rare-earth strategy is likely to develop over time.
Given the downward revisions to earnings estimates and the risks associated with their respective expansion plans, investors may prefer to wait for improved earnings visibility and clearer execution milestones before taking positions. Energy Fuels carries a Zacks Rank #4 (Sell) while MP Materials currently holds a Zacks Rank #4 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.