This article presents the investigation and comparison of the capabilities and characteristics of high-speed flux-switching permanent magnet machines using ferrite and rare earth permanent magnet materials. Special design considerations for ferrite flux-switching permanent magnet machines under high-speed operation are proposed. Two ferrite and one NdFeB flux-switching permanent magnet machines, rated at 10 kW and 15 krpm, were designed for performance assessment. Various machine performances, including torque characteristics and loss distribution, are compared. In addition, the risk of partial demagnetization and the performance degradation due to partial demagnetization are also investigated. This research reveals several promising characteristics of the ferrite flux-switching permanent magnet machine, such as lower total loss, negligible magnet eddy current loss, and better cooling potential. The results also show the possibility of designing a high torque density ferrite flux-switching permanent magnet machine, which is comparable to the NdFeB flux-switching permanent magnet machine, taking advantage of the flux concentrating effect.