Head-To-Head Review: Minerals Technologies (NYSE:MTX) versus Sociedad Quimica y Minera (NYSE:SQM)

Sociedad Quimica y Minera (NYSE:SQM) and Minerals Technologies (NYSE:MTX) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares Sociedad Quimica y Minera and Minerals Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sociedad Quimica y Minera	15.38%	11.99%	6.09%
Minerals Technologies	-3.13%	10.63%	5.20%

Volatility and Risk

Sociedad Quimica y Minera has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Minerals Technologies has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Institutional and Insider Ownership

12.4% of Sociedad Quimica y Minera shares are held by institutional investors. Comparatively, 97.3% of Minerals Technologies shares are held by institutional investors. 3.7% of Minerals Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Sociedad Quimica y Minera and Minerals Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sociedad Quimica y Minera	$4.58 billion	4.18	$588.14 million	$2.85	23.51
Minerals Technologies	$2.15 billion	1.10	-$18.40 million	($2.17)	-35.11

Sociedad Quimica y Minera has higher revenue and earnings than Minerals Technologies. Minerals Technologies 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sociedad Quimica y Minera and Minerals Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sociedad Quimica y Minera	1	8	5	1	2.40
Minerals Technologies	0	2	1	0	2.33

Sociedad Quimica y Minera currently has a consensus price target of $73.58, indicating a potential upside of 9.82%. Minerals Technologies has a consensus price target of $90.00, indicating a potential upside of 18.13%. Given Minerals Technologies’ higher probable upside, analysts clearly believe Minerals Technologies is more favorable than Sociedad Quimica y Minera.

Dividends

Sociedad Quimica y Minera pays an annual dividend of $2.65 per share and has a dividend yield of 4.0%. Minerals Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. Sociedad Quimica y Minera pays out 93.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Minerals Technologies pays out -22.1% of its earnings in the form of a dividend. Minerals Technologies has raised its dividend for 2 consecutive years.

Summary

Sociedad Quimica y Minera beats Minerals Technologies on 12 of the 18 factors compared between the two stocks.

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.

About Minerals Technologies

Minerals Technologies Inc. develops, produces, and markets various mineral, mineral-based, and related systems and services. The company operates through two segments, Consumer & Specialties, and Engineered Solutions segments. The Consumer & Specialties segment offers household and personal care products, such as pet litter, personal care, fabric care, edible oil and other fluid purification, animal health, and agricultural products; and specialty additives products, including precipitated calcium carbonate and ground calcium carbonate products that are used in the paper, paperboard, and fiber based packaging industries, as well as automotive, construction, and table and food applications. This segment produces limestone and dolomitic limestone used in construction, automotive, and consumer markets for packaging applications. The Engineered Solutions segment provides high-temperature technology products consisting of custom-blended mineral and non-mineral products for casting auto parts, farm and construction equipment, oil and gas production equipment, power generation turbine castings, and rail car components; and environmental and infrastructure products comprising geosynthetic clay lining systems, vapor intrusion mitigation products, sub surface waterproofing systems, green roofs, wastewater remediation, drinking water purification technologies, and drilling products. In addition, this segment provides chromite products; gunnable monolithic refractory products and application systems; monolithic refractory materials and pre-cast refractory shapes; refractory shapes and linings; carbon composite and pyrolitic graphite; and filtration and well testing services. It markets its products primarily through its direct sales force, as well as regional distributors. The company serves in the United States, Canada, Latin America, Europe, Africa, and Asia. Minerals Technologies Inc. was incorporated in 1968 and is headquartered in New York, New York.