What are neodymium permanent magnets and why do EVs need them?

NdFeB magnets (neodymium-iron-boron): discovered in 1982 simultaneously by General Motors and Japan's Sumitomo Special Metals; NdFeB magnets are the strongest type of permanent magnets commercially produced; they can generate magnetic fields 5-12 times stronger than ferrite (iron oxide) magnets at one-tenth the weight. How EVs use NdFeB magnets: most EV traction motors (propulsion motors) use permanent magnet synchronous motors (PMSM) — the most power-dense and efficient motor type; PMSM motors require strong permanent magnets embedded in the rotor; NdFeB magnets enable high power density (more power per kilogram of motor weight), high efficiency (less energy lost to heat), and compact size (smaller motor package fits more easily in EV architecture). How much NdPr per EV: a typical EV traction motor uses 1-3 kg of NdFeB magnet material containing approximately 30-35% NdPr by weight (so approximately 0.3-1 kg of NdPr per EV); as EV production scales to millions annually, cumulative NdPr demand grows proportionally. Wind turbines: large direct-drive offshore wind turbines (5-12 MW rating) use NdFeB permanent magnet generators containing 300-600 kg of NdFeB magnet material — consuming approximately 100-200 kg of NdPr per turbine; offshore wind buildout is a significant additional NdPr demand driver.

What is Streak Visual Ammunition and what markets does it serve?

Traditional tracer ammunition: incendiary tracer bullets have a small cavity in the base filled with a pyrotechnic composition (magnesium and strontium); when fired, the propellant gas ignites the tracer composition; the burning tracer glows red or white as it flies downrange; tracer ammunition is used by military forces for target indication ('walking the tracers onto the target'), fire correction, and signaling. Problems with traditional tracers: the incendiary composition burns hot and continues burning after the bullet hits the ground; traditional tracers create fire hazards in dry environments (forest ranges, desert training areas); many civilian shooting ranges prohibit tracer ammunition due to fire risk; law enforcement cannot use incendiary ammunition in most operational environments. Streak Visual Ammunition solution: Streak uses a phosphorescent (luminescent) polymer coating on the base of the bullet; the coating absorbs energy from the propellant gas flash and re-emits light for a period after leaving the barrel; this creates a visible streak effect visible to the shooter but without incendiary composition; the ammunition is non-incendiary and legal for civilian use; available in red and green variants. Target markets: law enforcement (provides trajectory visualization without fire hazard in tactical training scenarios); competitive shooters (allows observation of miss trajectory for faster correction); home defenders (visibility in low-light scenarios for target confirmation); range shooters (technique feedback). Competitive moat: the phosphorescent polymer coating technology is patented by AMMO; competitors making conventional tracer ammunition cannot replicate the non-incendiary Streak effect without licensing AMMO's patents.

What is GunBroker.com and how does the firearms marketplace business work?

GunBroker history: GunBroker.com was founded in 1999; it is the largest online auction and fixed-price marketplace for firearms, ammunition, and related accessories in the United States; firearms transactions on GunBroker are conducted using Federal Firearms License (FFL) dealers as intermediaries. How firearms are sold online: federal law (the Gun Control Act) requires that firearms transfers involving states lines go through a licensed FFL dealer; a buyer and seller agree to a transaction on GunBroker; the buyer pays; the seller ships to the buyer's local FFL dealer; the buyer completes a standard Form 4473 background check at the FFL dealer and, if approved, takes possession of the firearm; the FFL dealer charges a transfer fee ($20-50 typically). GunBroker's revenue model: GunBroker earns a commission on completed transactions (approximately 3-5% of sale price); GunBroker also earns listing fees from sellers (small fee to list an item); GunBroker's marketplace is asset-light — it doesn't hold inventory; it earns commission each time a transaction occurs on its platform. Scale: GunBroker processes hundreds of thousands of transactions annually representing billions of dollars in firearms and accessories sales; the platform has millions of registered users; it is to firearms what eBay is to general consumer goods. AMMO's acquisition rationale (2021): AMMO acquired GunBroker for approximately $240M to gain a direct channel to firearms consumers and build a combined ammunition manufacturing / marketplace ecosystem.

brimindinvest.com / compare / mp-vs-ammoLIVE

MP

MP Materials Corp. · Materials - Rare Earth Mining & Processing

$60.88

+10.83% this month

VERSUS

⟷

COMPARE

POWW

AMMO Inc. · Consumer Discretionary / Defense - Ammunition Manufacturing

$2.14

+8.08% this month

Scoreboard verdict

Across AI score, momentum, valuation, upside, operating margin

MP

3

POWW

0

MP LEADS 3/5

Comparison scoreboard

MP LEADS 3/5

AI Score

MP ✓56.5

POWW 24.3

1Y Return

MP ✓+63.57%

POWW +53.96%

Fwd P/E

MP 55.36

POWW N/A

Target Up.

MP ✓+32.12%

POWW +23.83%

Op. Margin

MP N/A

POWW N/A

Metrics last refreshed: 6/20/2026

Quick take

MP vs AMMO Stock Comparison: AI Score, Valuation, Performance and Upside

MP Materials (MP) and AMMO Inc. (POWW) are both natural resources and manufacturing companies but serving entirely different markets — MP Materials is a strategic national security and clean energy play as the only U.S. rare earth ore producer building a domestic neodymium permanent magnet supply chain for EVs, while AMMO Inc. is a specialty ammunition manufacturer with proprietary Streak technology and the GunBroker online marketplace.

MP vs AMMO is the only U.S. rare earth producer building a domestic EV magnet supply chain with strategic government backing (MP Materials' Mountain Pass mine, NdPr oxide refining, and Fort Worth magnet manufacturing — national security tailwinds and EV secular demand with NdPr price China-dependency) versus specialty ammunition manufacturer with proprietary tracer technology and online gun marketplace (AMMO Inc.'s Streak Visual Ammunition differentiation and GunBroker marketplace platform — civilian demand cyclicality and competitive ammunition market dynamics) — critical national security material versus civilian recreation/defense specialty manufacturing.

Live analysis · updated 6/20/2026

MP holds the edge across 3 of 5 key metrics in this comparison. MP has delivered stronger 1-year price return (+63.57% vs +53.96% for POWW). Analyst consensus implies meaningfully more upside for MP (+32.12%) than for POWW (+23.83%).

Normalized 1Y performance

MP

POWW

Recent returns

MP

POWW

Analyst price targets & sentiment

MP · 16 analysts

STRONG BUYHOLDSTRONG SELL

Strong Buy (1.3/5.0)

Price target range

analyst low$69.00
analyst high$100.00
analyst mean$80.44
current price$60.88

+32.1% upside to analyst mean

POWW · 2 analysts

Price target range

analyst low$2.30
analyst high$3.00
analyst mean$2.65
current price$2.14

+23.8% upside to analyst mean

Who should consider this stock?

MP may suit investors who:

→Believe the U.S. government's commitment to domestic rare earth supply chain development (DoD contracts, IRA incentives) provides durable financial support for MP Materials' capital-intensive buildout
→See EV adoption growth as a structural demand driver for NdPr permanent magnets that will absorb Mountain Pass production growth over a multi-year horizon
→Value MP's Fort Worth magnet manufacturing as a transformational expansion that will capture downstream magnet margins and reduce NdPr oxide price volatility impact

POWW may suit investors who:

→Value GunBroker.com's dominant firearms marketplace position as a high-margin, recurring revenue platform that provides a moat beyond pure ammunition manufacturing
→See Streak Visual Ammunition's non-incendiary tracer technology as a proprietary product differentiation that can expand into law enforcement and military markets
→Believe AMMO's U.S.-only manufacturing qualifies it for federal and state law enforcement ammunition contracts that exclude offshore producers

Performance & AI score

Metric	MP	POWW
AI score	56.5	24.3
AI rank	#233	#3207
Latest close	$60.88	$2.14
1M return	+10.83%	+8.08%
6M return	+17.01%	+7.54%
1Y return	+63.57%	+53.96%

$10,000 invested — hypothetical growth (dividends reinvested)

How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?

Period	MP	POWW
1Y ago	$16.36K (+63.6%) started 2025-06-18	$15.4K (+54.0%) started 2025-06-18
5Y ago	$19.76K (+97.6%) started 2021-06-18	$2.7K (-73.0%) started 2021-06-18
10Y ago	$60.88K (+508.8%) started 2020-06-22	$5.49K (-45.1%) started 2017-02-07

Hypothetical — past performance does not guarantee future results.

Valuation & upside potential

Metric	MP	POWW
Market cap	$10.84B	$251M
Trailing P/E	N/A	N/A
Forward P/E	55.36	N/A
Price/Sales	31.18	5.45
EV/Revenue	28.42	3.70
Analyst target	$80.44	$2.65
Target upside	+32.12%	+23.83%

Growth, profitability & risk

Metric	MP	POWW
Revenue growth	118.60%	53.20%
Earnings growth	N/A	N/A
EPS growth	N/A	N/A
FCF margin	-50.30%	+62.61%
Operating margin	N/A	N/A
Profit margin	-20.48%	-174.58%
ROIC proxy	-4.17%	-10.87%
Return on equity	-4.17%	-10.87%
Dividend yield	0.00%	0.00%
Beta	1.84	1.02
Debt/equity	44.02	4.74
Current ratio	7.18	4.00
Quick ratio	6.51	3.83

Drawdown & downside risk

Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.

1Y risk snapshot

MP max drawdown53.79%

POWW max drawdown22.12%

MP max wkly drop24.88%

POWW max wkly drop14.18%

5Y risk snapshot

MP max drawdown81.99%

POWW max drawdown89.99%

MP max wkly drop24.88%

POWW max wkly drop32.48%

10Y risk snapshot

MP max drawdown81.99%

POWW max drawdown89.99%

MP max wkly drop25.69%

POWW max wkly drop53.20%

Performance metrics by period

Period	Metric	MP	POWW
1Y	Growth	+63.57%	+53.96%
	CAGR	+63.62%	+54.00%
	Sharpe ratio	0.91	1.04
	Max drawdown	53.79%	22.12%
	Max daily drop	11.99%	8.60%
	Max wkly drop	24.88%	14.18%
5Y	Growth	+97.60%	-72.98%
	CAGR	+14.59%	-23.03%
	Sharpe ratio	0.47	-0.24
	Max drawdown	81.99%	89.99%
	Max daily drop	14.29%	28.69%
	Max wkly drop	24.88%	32.48%
10Y	Growth	+508.80%	-45.13%
	CAGR	+35.21%	-6.21%
	Sharpe ratio	0.71	0.35
	Max drawdown	81.99%	89.99%
	Max daily drop	18.27%	41.50%
	Max wkly drop	25.69%	53.20%

Business comparison

Category	MP	POWW
Company	MP Materials Corp.	AMMO Inc.
Sector	Materials - Rare Earth Mining & Processing	Consumer Discretionary / Defense - Ammunition Manufacturing
Industry	N/A	N/A
Core business	MP Materials is the only U.S. rare earth element (REE) producer, operating the Mountain Pass rare earth mine and processing facility in the Mojave Desert of California — once the world's largest rare earth mine before Chinese competition caused closure. MP Materials produces rare earth ore concentrate (bastnasite ore) and is ramping refining operations to produce separated rare earth oxides, primarily neodymium-praseodymium oxide (NdPr) — the critical element for neodymium-iron-boron (NdFeB) permanent magnets used in electric vehicle traction motors and wind turbine generators. MP Materials is also building a permanent magnet manufacturing facility in Fort Worth, Texas to create a fully domestic rare earth-to-magnet supply chain for U.S. national security and clean energy applications.	AMMO Inc. (ticker: POWW) is a U.S. ammunition manufacturer producing small caliber ammunition (handgun cartridges, rifle ammunition, and shotgun shells) for civilian and law enforcement markets. AMMO's proprietary product technology includes Streak Visual Ammunition (tracer-effect ammunition using a phosphorescent projectile that glows red or green in the direction of fire — allowing shooters to observe trajectory without the fire hazard of traditional tracers) and AMMO's anti-material and specialty rifle ammunition. AMMO also operates GunBroker.com — the largest online marketplace for firearms and related products — acquired in 2021. AMMO manufactures at facilities in Payson, Arizona and Manitowoc, Wisconsin.
Investor focus	Investors track Mountain Pass ore production volumes, NdPr oxide pricing (set by Chinese benchmark prices — typically $60-120/kg), progress on the refining ramp (Stage 2) producing separated oxides, and the Fort Worth magnet manufacturing buildout (Stage 3).	Investors track AMMO's ammunition shipment volumes, average selling price, GunBroker platform transaction volume (marketplace revenue is higher-margin than manufactured ammunition), and the strategic direction of the combined ammunition manufacturing and marketplace business.

MP strengths

→Only U.S. rare earth producer — national security tailwind — MP Materials is the sole domestic source of rare earth ore; the U.S. has relied on China (which produces approximately 60%+ of global rare earth supply) for these materials; U.S. government is actively supporting domestic rare earth production through DoD contracts and Inflation Reduction Act incentives
→NdPr demand is driven by secular EV and wind turbine growth — neodymium permanent magnets are a critical enabling technology for electric motors; every EV with a permanent magnet traction motor (the majority) requires NdPr magnets; as EV adoption grows, NdPr demand grows proportionally
→Fort Worth magnet plant extends the value chain and captures downstream margin — rather than selling NdPr oxide to Chinese magnet manufacturers, MP's Fort Worth plant will produce finished NdFeB magnets for U.S. customers; GM has contracted to buy MP magnets for its Ultium EV platform; magnet margin substantially exceeds oxide margin

POWW strengths

→Streak Visual Ammunition is a proprietary product differentiation unavailable from competitors — traditional tracers use phosphorous that creates fire hazard; Streak's non-incendiary visual indicator provides target feedback without fire risk; law enforcement and shooting range markets value this feature; proprietary technology creates pricing power
→GunBroker.com marketplace business is a high-margin recurring revenue platform — GunBroker is the largest online firearms marketplace; it earns commission revenue from every firearm transaction conducted through the platform; marketplace revenue is asset-light and grows with platform transaction volume
→U.S. domestic ammunition manufacturing benefits from defense and law enforcement procurement preferences — the DoD and federal law enforcement agencies increasingly specify U.S.-manufactured ammunition for supply chain security; AMMO's U.S. manufacturing qualifies it for these contracts

Risks to watch — MP

→NdPr pricing is set primarily by Chinese benchmark prices — while MP is the only U.S. producer, the price it receives for NdPr tracks Chinese export prices; China controls NdPr supply globally and can depress prices to pressure Western competitors
→Fort Worth magnet plant is a large, complex, new manufacturing facility requiring ramp and qualification — permanent magnet manufacturing requires specific metallurgical expertise and precision; production ramps take time; qualifying magnets for specific EV platforms requires extensive testing
→Mountain Pass geology and environmental permitting create ongoing operational challenges — mining in the Mojave Desert involves ongoing environmental monitoring; any water, waste, or dust issues require regulatory response; the radioactive thorium byproduct from Mountain Pass ore requires careful handling and disposal

Risks to watch — POWW

→Civilian ammunition demand is highly cyclical with political events — gun and ammunition buying surges before elections (fear of regulatory change), during social unrest, and in response to news events; demand between surges is significantly lower; managing inventory and capacity to civilian demand cycles is very difficult
→GunBroker's marketplace revenue depends on federal and state firearms regulations — any policy that reduces legal firearm transactions reduces GunBroker's transaction volume; firearms regulation is an ongoing political variable
→Large manufacturers (Vista Outdoor, Olin/Winchester, Federal/ATK) dominate the ammunition market — AMMO competes against much larger, better-capitalized producers; competing for shelf space at Walmart, Cabela's, and Bass Pro requires significant marketing investment

Frequently asked questions

Rare earth elements (REEs): a group of 17 metallic elements — the 15 lanthanides (lanthanum through lutetium on the periodic table) plus scandium and yttrium; despite their name, most are not geologically scarce, but economic concentrations in mineable ore deposits are relatively rare. Critical REEs: neodymium (Nd) and praseodymium (Pr) — the NdPr pair used in NdFeB permanent magnets; dysprosium (Dy) added to NdFeB magnets to maintain performance at high temperatures; terbium (Tb) used in display phosphors and solid-state lighting; europium (Eu) used in red phosphors for LED and display applications. Why the U.S. cares about supply: China controls approximately 60% of global rare earth mining capacity and approximately 85% of rare earth processing (converting ore to separated oxides); the U.S. and Western allies depend on China for the rare earth oxides used in EV motors, wind turbines, defense systems (F-35 stealth surfaces, precision-guided munitions, sonar), and electronics; this dependence creates national security vulnerability; China has used rare earth export controls as leverage in trade disputes; the U.S. government (DoD, DOE) has identified rare earth supply chain self-sufficiency as a national security priority. Mountain Pass significance: Mountain Pass is the only significant rare earth mining operation in the United States; restarting and expanding Mountain Pass is central to U.S. strategy for domestic REE supply chain development.

AI Prediction SignalNext 5 trading days

Members only

+2.8%BUY

POWW

+1.1%HOLD

Start Free Trial Log in

ML model trained on historical prices · 14-day free trial · No credit card required

Free public comparison

Want deeper AI forecasts?

This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.

Start Free Trial Read Investing Guides