Minerals Technologies (NYSE: MTX) and W.R. Grace & Co. (NYSE:GRA) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Earnings and Valuation
This table compares Minerals Technologies and W.R. Grace & Co.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Minerals Technologies||$1.64 billion||1.56||$133.40 million||$4.39||16.42|
|W.R. Grace & Co.||$1.60 billion||3.03||$94.10 million||$2.21||32.39|
Minerals Technologies has higher revenue and earnings than W.R. Grace & Co.. Minerals Technologies is trading at a lower price-to-earnings ratio than W.R. Grace & Co., indicating that it is currently the more affordable of the two stocks.
Minerals Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. W.R. Grace & Co. pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Minerals Technologies pays out 4.6% of its earnings in the form of a dividend. W.R. Grace & Co. pays out 38.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Volatility & Risk
Minerals Technologies has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500. Comparatively, W.R. Grace & Co. has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
Institutional & Insider Ownership
94.4% of Minerals Technologies shares are held by institutional investors. Comparatively, 85.7% of W.R. Grace & Co. shares are held by institutional investors. 2.2% of Minerals Technologies shares are held by insiders. Comparatively, 1.3% of W.R. Grace & Co. shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Minerals Technologies and W.R. Grace & Co.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|W.R. Grace & Co.||8.54%||48.03%||6.40%|
This is a summary of current recommendations and price targets for Minerals Technologies and W.R. Grace & Co., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|W.R. Grace & Co.||0||3||7||0||2.70|
Minerals Technologies currently has a consensus price target of $80.00, indicating a potential upside of 10.96%. W.R. Grace & Co. has a consensus price target of $81.00, indicating a potential upside of 13.14%. Given W.R. Grace & Co.’s stronger consensus rating and higher possible upside, analysts clearly believe W.R. Grace & Co. is more favorable than Minerals Technologies.
About Minerals Technologies
Minerals Technologies Inc. is a resource- and technology-based company that develops, produces and markets a range of specialty mineral, mineral-based and synthetic mineral products and related systems and services around the world. It operates through four segments. The Specialty Minerals segment produces and sells the synthetic mineral product precipitated calcium carbonate (PCC), mines mineral ores, and processes and sells natural mineral products, primarily limestone and talc. The Performance Materials segment is a supplier of bentonite and bentonite-related products to industrial and consumer markets globally. The Refractories segment produces and markets monolithic and shaped refractory materials and specialty products, services and application and measurement equipment. The Energy Services segment offers a range of services to improve the production, costs, compliance and environmental impact of activities performed in the oil and gas industry.
About W.R. Grace & Co.
W. R. Grace & Co. (Grace) is engaged in the production and sale of specialty chemicals and specialty materials. The Company operates in two segments: Grace Catalysts Technologies and Grace Materials Technologies. The Grace Catalysts Technologies segment includes catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications. The Grace Materials Technologies segment includes specialty materials, including silica-based and silica-alumina-based materials, used in coatings, consumer, industrial, and pharmaceutical applications. It Grace Catalysts Technologies segment produces and sells catalysts and related products and technologies used in refining, petrochemical and other chemical manufacturing applications, including Fluid catalytic cracking catalysts (FCC), Hydroprocessing catalysts (HPC), and Polyolefin catalysts and catalyst supports.
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