Should You Ignore MP Materials and Buy This Rare-Earth Stock Instead?
Rare-earth magnets are essential to the modern economy, and these two stocks help ensure a domestic supply.
Overview
It's MP Materials (NYSE: MP) versus USA Rare Earth (NASDAQ: USAR) in the great debate over which is the leading rare-earth company that will solve the problem of securing a domestic supply. The two companies have key differences, which means they will work differently in your portfolio. Here's why, and a suggestion for how to invest in the sector.
Both companies have received substantive backing from the U.S. government, and understandably so. China dominates the rare-earth market, and given the critical importance of rare-earth magnets to the global economy, it's a matter of national security to ensure that the U.S. defense and manufacturing sectors have access to domestically produced, non-China-sourced rare-earth magnets.
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Originally published at www.fool.com.