Rainbow Rare Earths (RBW) Competitors

Sovereign Metals (LON:SVML) and Rainbow Rare Earths (LON:RBW) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, media sentiment, valuation, risk, dividends and analyst recommendations.

Do analysts recommend SVML or RBW?

Sovereign Metals currently has a consensus price target of GBX 55, suggesting a potential upside of 50.07%. Rainbow Rare Earths has a consensus price target of GBX 27.50, suggesting a potential upside of 89.66%. Given Rainbow Rare Earths' higher possible upside, analysts plainly believe Rainbow Rare Earths is more favorable than Sovereign Metals.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sovereign Metals	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	3.00
Rainbow Rare Earths	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00

Which has stronger valuation and earnings, SVML or RBW?

Rainbow Rare Earths is trading at a lower price-to-earnings ratio than Sovereign Metals, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sovereign Metals	N/A	N/A	-£39.22M	-£1.65	-22.15
Rainbow Rare Earths	N/A	N/A	-£5.32K	-£0.00	-27,682.32

Do institutionals and insiders hold more shares of SVML or RBW?

8.5% of Sovereign Metals shares are owned by institutional investors. Comparatively, 0.5% of Rainbow Rare Earths shares are owned by institutional investors. 35.2% of Sovereign Metals shares are owned by company insiders. Comparatively, 42.0% of Rainbow Rare Earths shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Is SVML or RBW more profitable?

Rainbow Rare Earths' return on equity of -0.02% beat Sovereign Metals' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Sovereign Metals	N/A	-53.90%	-50.84%
Rainbow Rare Earths	N/A	-0.02%	-12.54%

Which has more volatility and risk, SVML or RBW?

Sovereign Metals has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Rainbow Rare Earths has a beta of 2.25, suggesting that its share price is 125% more volatile than the S&P 500.

Does the media favor SVML or RBW?

In the previous week, Sovereign Metals' average media sentiment score of 0.00 equaled Rainbow Rare Earths'average media sentiment score.

Company	Overall Sentiment
Sovereign Metals	Neutral
Rainbow Rare Earths	Neutral

Summary

Rainbow Rare Earths beats Sovereign Metals on 8 of the 10 factors compared between the two stocks.