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Similarity=Both magnetite (Fe3O4) & hematite (Fe2O3) are iron oxides. However, the oxidation state of iron (Fe) is not the same for both minerals. Hematite contains only the 3+ type of Fe. Magnetite in contrast contains both 2+ and 3+ Fe.

Difference=The mineral magnetite actually has higher iron content than the mineral hematite. However, while hematite ore generally contains large concentrations of hematite, magnetite ore generally holds low concentrations of magnetite. ... Magnetite ore's magnetic properties are helpful during this process.

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