Kaiser Aluminum (NASDAQ:KALU – Get Free Report) and Silver Standard Resources (NASDAQ:SSRM – Get Free Report) are both mid-cap materials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Kaiser Aluminum and Silver Standard Resources, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kaiser Aluminum | 1 | 2 | 3 | 0 | 2.33 |
| Silver Standard Resources | 0 | 2 | 8 | 1 | 2.91 |
Kaiser Aluminum currently has a consensus target price of $167.25, indicating a potential upside of 15.73%. Silver Standard Resources has a consensus target price of $42.40, indicating a potential upside of 25.97%. Given Silver Standard Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Silver Standard Resources is more favorable than Kaiser Aluminum.
Volatility and Risk
Profitability
This table compares Kaiser Aluminum and Silver Standard Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kaiser Aluminum | 5.49% | 24.71% | 7.86% |
| Silver Standard Resources | 12.30% | 16.17% | 11.84% |
Institutional and Insider Ownership
99.3% of Kaiser Aluminum shares are owned by institutional investors. Comparatively, 68.3% of Silver Standard Resources shares are owned by institutional investors. 1.3% of Kaiser Aluminum shares are owned by insiders. Comparatively, 0.8% of Silver Standard Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
Kaiser Aluminum pays an annual dividend of $3.08 per share and has a dividend yield of 2.1%. Silver Standard Resources pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. Kaiser Aluminum pays out 22.8% of its earnings in the form of a dividend. Silver Standard Resources pays out 10.9% 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.
Earnings & Valuation
This table compares Kaiser Aluminum and Silver Standard Resources”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kaiser Aluminum | $4.14 billion | 0.57 | $112.50 million | $13.49 | 10.71 |
| Silver Standard Resources | $1.63 billion | 4.16 | $395.75 million | $1.10 | 30.60 |
Silver Standard Resources has lower revenue, but higher earnings than Kaiser Aluminum. Kaiser Aluminum is trading at a lower price-to-earnings ratio than Silver Standard Resources, indicating that it is currently the more affordable of the two stocks.
Summary
Silver Standard Resources beats Kaiser Aluminum on 10 of the 17 factors compared between the two stocks.
About Kaiser Aluminum
Kaiser Aluminum Corporation, together with its subsidiaries, engages in manufacture and sale of semi-fabricated specialty aluminum mill products in the United States and internationally. It offers rolled, extruded, and drawn aluminum products used for aerospace and defense, aluminum beverage and food packaging, automotive and general engineering products. The company's automotive extrusions include extruded aluminum products for structural components, crash management systems, anti-lock braking systems, and drawn tubes for drive shafts, as well as offers fabrication services, including sawing and cutting to length. Its packaging products consist of bare and coated 3000- and 5000-series alloy aluminum coil used for beverage and food packaging industry. In addition, the company's general engineering products comprise alloy plate, sheet, rod, bar, tube, wire, and standard extrusion shapes used in various applications, including the production of military vehicles, ordnances, semiconductor manufacturing cells, electronic devices, after-market motor sport parts, tooling plates, parts for machinery and equipment, bolts, screws, nails, and rivets. Further, its rerolled, extruded, drawn, and cast billet aluminum products used for industrial end uses. The company sells its products directly to customers through sales personnel located in the United States, Canada, Western Europe, and China, as well as through independent sales agents in other regions of Asia, Latin America, and the Middle East. Kaiser Aluminum Corporation was founded in 1946 and is headquartered in Franklin, Tennessee.
About Silver Standard Resources
SSR Mining Inc., together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was incorporated in 1946 and is based in Denver, Colorado.
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