Minerals Technologies (NYSE: MTX) and Innospec (NASDAQ:IOSP) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.
This table compares Minerals Technologies and Innospec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
94.4% of Minerals Technologies shares are owned by institutional investors. Comparatively, 90.7% of Innospec shares are owned by institutional investors. 2.2% of Minerals Technologies shares are owned by insiders. Comparatively, 2.0% of Innospec shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Minerals Technologies and Innospec’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Minerals Technologies||$1.62 billion||1.58||$349.20 million||$4.40||16.53|
|Innospec||$1.06 billion||1.44||$150.30 million||$3.13||20.18|
Minerals Technologies has higher revenue and earnings than Innospec. Minerals Technologies is trading at a lower price-to-earnings ratio than Innospec, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for Minerals Technologies and Innospec, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Minerals Technologies currently has a consensus price target of $80.00, indicating a potential upside of 9.97%. Innospec has a consensus price target of $65.00, indicating a potential upside of 2.93%. Given Minerals Technologies’ higher probable upside, equities research analysts plainly believe Minerals Technologies is more favorable than Innospec.
Minerals Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Innospec pays an annual dividend of $0.76 per share and has a dividend yield of 1.2%. Minerals Technologies pays out 4.5% of its earnings in the form of a dividend. Innospec pays out 24.3% 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 and Risk
Minerals Technologies has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500. Comparatively, Innospec has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
Minerals Technologies beats Innospec on 11 of the 14 factors compared between the two stocks.
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.
Innospec Inc. is a specialty chemicals company engaged in developing, manufacturing, blending, marketing and supplying of specialty chemicals for use as fuel additives and ingredients for personal care, home care, agrochemical, mining and other applications and oilfield chemicals. The Company operates through four business segments: Fuel Specialties, Performance Chemicals, Oilfield Services and Octane Additives. Its Fuel Specialties develops, manufactures, blends, markets and supplies various specialty chemical products that are used as additives for a range of fuels. Its Performance Chemicals provides technology-based solutions. Its Oilfield Services business supplies drilling, completion and production chemicals. Its Octane Additives business manufactures a fuel additive for use in automotive gasoline and provides services in respect of environmental remediation. Its customers include oil and gas exploration and production companies, fuel users, and oil refiners among others.
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