Analyzing Minerals Technologies (NYSE:MTX) and Its Peers

Minerals Technologies (NYSE: MTX) is one of 47 publicly-traded companies in the “Specialty Chemicals” industry, but how does it compare to its competitors? We will compare Minerals Technologies to similar businesses based on the strength of its institutional ownership, dividends, profitability, earnings, risk, valuation and analyst recommendations.

Profitability

This table compares Minerals Technologies and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Minerals Technologies 9.48% 14.59% 5.57%
Minerals Technologies Competitors -6.42% 0.30% 3.68%

Dividends

Minerals Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Minerals Technologies pays out 4.6% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.3% and pay out 26.2% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations for Minerals Technologies and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Minerals Technologies 0 1 1 0 2.50
Minerals Technologies Competitors 166 1026 1281 24 2.47

Minerals Technologies presently has a consensus target price of $80.00, suggesting a potential upside of 10.96%. As a group, “Specialty Chemicals” companies have a potential downside of 3.33%. Given Minerals Technologies’ stronger consensus rating and higher probable upside, research analysts plainly believe Minerals Technologies is more favorable than its competitors.

Valuation and Earnings

This table compares Minerals Technologies and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Minerals Technologies $1.64 billion $133.40 million 16.42
Minerals Technologies Competitors $2.01 billion $127.25 million 232.73

Minerals Technologies’ competitors have higher revenue, but lower earnings than Minerals Technologies. Minerals Technologies is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

94.4% of Minerals Technologies shares are held by institutional investors. Comparatively, 66.5% of shares of all “Specialty Chemicals” companies are held by institutional investors. 2.2% of Minerals Technologies shares are held by company insiders. Comparatively, 7.6% of shares of all “Specialty Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Minerals Technologies has a beta of 2.26, suggesting that its share price is 126% more volatile than the S&P 500. Comparatively, Minerals Technologies’ competitors have a beta of 1.46, suggesting that their average share price is 46% more volatile than the S&P 500.

Summary

Minerals Technologies beats its competitors on 9 of the 15 factors compared.

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.

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