Sociedad Química y Minera (NYSE: SQM) and Martin Marietta Materials (NYSE:MLM) are both large-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.
Volatility & Risk
Sociedad Química y Minera has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Martin Marietta Materials has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.
This table compares Sociedad Química y Minera and Martin Marietta Materials’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sociedad Química y Minera||19.70%||19.01%||10.18%|
|Martin Marietta Materials||17.99%||10.55%||5.80%|
Sociedad Química y Minera pays an annual dividend of $1.17 per share and has a dividend yield of 2.1%. Martin Marietta Materials pays an annual dividend of $1.76 per share and has a dividend yield of 0.9%. Sociedad Química y Minera pays out 71.8% of its earnings in the form of a dividend. Martin Marietta Materials pays out 24.5% 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. Sociedad Química y Minera has increased its dividend for 4 consecutive years. Sociedad Química y Minera is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and target prices for Sociedad Química y Minera and Martin Marietta Materials, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sociedad Química y Minera||1||4||4||0||2.33|
|Martin Marietta Materials||0||4||5||0||2.56|
Sociedad Química y Minera presently has a consensus price target of $60.75, suggesting a potential upside of 7.50%. Martin Marietta Materials has a consensus price target of $241.13, suggesting a potential upside of 21.68%. Given Martin Marietta Materials’ stronger consensus rating and higher possible upside, analysts plainly believe Martin Marietta Materials is more favorable than Sociedad Química y Minera.
Valuation and Earnings
This table compares Sociedad Química y Minera and Martin Marietta Materials’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sociedad Química y Minera||$2.16 billion||6.89||$427.69 million||$1.63||34.67|
|Martin Marietta Materials||$3.97 billion||3.14||$713.34 million||$7.18||27.60|
Martin Marietta Materials has higher revenue and earnings than Sociedad Química y Minera. Martin Marietta Materials is trading at a lower price-to-earnings ratio than Sociedad Química y Minera, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
12.8% of Sociedad Química y Minera shares are owned by institutional investors. Comparatively, 100.0% of Martin Marietta Materials shares are owned by institutional investors. 8.5% of Martin Marietta Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Martin Marietta Materials beats Sociedad Química y Minera on 10 of the 17 factors compared between the two stocks.
Sociedad Química y Minera Company Profile
Sociedad Química y Minera de Chile S.A. produces and distributes specialty plant nutrients, industrial chemicals, iodine and derivatives, lithium and derivatives, potassium, and other products and services. The company offers specialty plant nutrients, such as potassium nitrate, sodium nitrate, sodium potassium nitrate, specialty blends, and other specialty fertilizers for crops, including vegetables, fruits, and flowers under the Ultrasol, Qrop, Speedfol, and Allganic brands. It also provides iodine and its derivatives for use in medical, pharmaceutical, agricultural, and industrial applications comprising X-ray contrast media, polarizing films for LCD and LED, antiseptics, biocides and disinfectants in the synthesis of pharmaceuticals, electronics, pigments, and dye components under the QIodine brand. In addition, the company offers lithium carbonates for various applications, such as electrochemical materials for batteries, frits for ceramic and enamel industries, heat-resistant glass, air conditioning chemicals, casting powder for steel extrusion, primary aluminum smelting process, pharmaceuticals, and lithium derivatives; supplies lithium hydroxide for the lubricating greases industry, as well as for cathodes for batteries; and sells lithium chloride solutions. Its lithium products are marketed under the QLithiumCarbonate, QLithiumHydroxide, and QLubelith brands. Further, it provides potassium sulfate; potassium chloride under the Qrop MOP brand; and industrial chemicals, including sodium nitrate, potassium nitrate, potassium chloride, and solar salts under the QSodiumNitrate, QPotassiumNitrate, and QPotassiumChloride brands, as well as sells other fertilizers and blends. The company sells its products through sales offices and a network of distributors worldwide. Sociedad Química y Minera de Chile S.A. was founded in 1968 and is headquartered in Santiago, Chile.
Martin Marietta Materials Company Profile
Martin Marietta Materials, Inc., a natural-resource-based building materials company, supplies aggregates and heavy building materials to the construction industry in the United States and internationally. The company provides crushed stone, sand, and gravel products; ready mixed concrete, and asphalt and paving products; and Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. It also manufactures and markets magnesia-based chemical products for the industrial, agricultural, and environmental applications; and dolomitic lime primarily for customers in the steel and mining industries, as well as provides road paving construction services. The company's chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. Martin Marietta Materials, Inc. was founded in 1993 and is headquartered in Raleigh, North Carolina.
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