Critical Survey: Sociedad Quimica y Minera (NYSE:SQM) & Bioceres Crop Solutions (NASDAQ:BIOX)

Bioceres Crop Solutions (NASDAQ:BIOX) and Sociedad Quimica y Minera (NYSE:SQM) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

17.7% of Bioceres Crop Solutions shares are held by institutional investors. Comparatively, 12.4% of Sociedad Quimica y Minera shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Bioceres Crop Solutions and Sociedad Quimica y Minera, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bioceres Crop Solutions	1	1	0	0	1.50
Sociedad Quimica y Minera	2	4	5	1	2.42

Bioceres Crop Solutions presently has a consensus target price of $2.00, suggesting a potential upside of 802.12%. Sociedad Quimica y Minera has a consensus target price of $86.12, suggesting a potential upside of 57.55%. Given Bioceres Crop Solutions’ higher probable upside, research analysts plainly believe Bioceres Crop Solutions is more favorable than Sociedad Quimica y Minera.

Risk & Volatility

Bioceres Crop Solutions has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500. Comparatively, Sociedad Quimica y Minera has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Earnings & Valuation

This table compares Bioceres Crop Solutions and Sociedad Quimica y Minera”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bioceres Crop Solutions	$238.30 million	0.06	-$54.40 million	($3.66)	-0.06
Sociedad Quimica y Minera	$6.73 billion	2.32	$588.14 million	$4.85	11.27

Sociedad Quimica y Minera has higher revenue and earnings than Bioceres Crop Solutions. Bioceres Crop Solutions is trading at a lower price-to-earnings ratio than Sociedad Quimica y Minera, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Bioceres Crop Solutions and Sociedad Quimica y Minera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bioceres Crop Solutions	-94.76%	-39.11%	-9.45%
Sociedad Quimica y Minera	20.62%	18.20%	9.46%

Summary

Sociedad Quimica y Minera beats Bioceres Crop Solutions on 11 of the 13 factors compared between the two stocks.

About Bioceres Crop Solutions

Bioceres Crop Solutions Corp., together with its subsidiaries, provides crop productivity solutions. It operates through Seed and Integrated Products, Crop Protection, and Crop Nutrition segments. The Seed and Integrated Products segment provides seed traits, germplasms, and seed treatment packs for healthier, and higher yielding crops. The Crop Protection segment develops, produces, and markets Rizoderma, adjuvants, therapies, herbicides, insecticides, fungicides, and baits. The Crop Nutrition segment develops, produces, commercializes, and sells inoculants, bio-inductors, and biological and microgranulated fertilizers. It also offers HB4, a drought tolerant seed technology program. The company operates in Argentina, Bolivia, Brazil, Colombia, Estonia, the United States, Paraguay, Russia, South Africa, France, Uruguay, and internationally. Bioceres Crop Solutions Corp. was founded in 2001 and is headquartered in Rosario, Argentina.

About Sociedad Quimica y Minera

Sociedad Química y Minera de Chile S.A. operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders. In addition, the company produces lithium carbonate and lithium hydroxide which are used in the production of cathode material for secondary batteries; lithium chloride; and basic lithium chemicals and lithium derivatives used in lubricating greases for heat-resistant glass, chips for the ceramic and glazing industry, and air conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. Further, it produces potassium sulfate; and potassium chloride which is used as a fertilizer for the application of potassium to different crops. Additionally, the company produces and markets industrial chemicals, such as sodium nitrate mainly used in the production of glass and explosives, metal processing and recycling, and production of insulating materials and adhesives; potassium nitrate used as a raw material to produce frits and special glass, as well as in the enamel, metal treatment, and pyrotechnic sectors; solar salts used as a thermal storage medium in solar power generation plants; and potassium chloride as an additive in oil drilling and food processing sectors. Furthermore, it is involved in the commercialization of third-party fertilizers; and exploration of copper, gold, and silver deposits. The company was founded in 1926 and is headquartered in Santiago, Chile.