PPG Industries (NYSE:PPG) versus Minerals Technologies (NYSE:MTX) Financial Contrast

Minerals Technologies (NYSE:MTX) and PPG Industries (NYSE:PPG) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Insider and Institutional Ownership

97.3% of Minerals Technologies shares are owned by institutional investors. Comparatively, 81.9% of PPG Industries shares are owned by institutional investors. 3.7% of Minerals Technologies shares are owned by insiders. Comparatively, 0.3% of PPG Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Minerals Technologies has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, PPG Industries has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Minerals Technologies and PPG Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Minerals Technologies	2	0	1	0	1.67
PPG Industries	0	8	9	0	2.53

Minerals Technologies currently has a consensus price target of $90.00, suggesting a potential upside of 45.64%. PPG Industries has a consensus price target of $128.29, suggesting a potential upside of 4.84%. Given Minerals Technologies’ higher probable upside, research analysts clearly believe Minerals Technologies is more favorable than PPG Industries.

Profitability

This table compares Minerals Technologies and PPG Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Minerals Technologies	-3.12%	10.73%	5.15%
PPG Industries	9.41%	20.90%	7.85%

Dividends

Minerals Technologies pays an annual dividend of $0.52 per share and has a dividend yield of 0.8%. PPG Industries pays an annual dividend of $2.96 per share and has a dividend yield of 2.4%. Minerals Technologies pays out -24.0% of its earnings in the form of a dividend. PPG Industries pays out 42.3% 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. Minerals Technologies has increased its dividend for 2 consecutive years and PPG Industries has increased its dividend for 54 consecutive years. PPG Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Minerals Technologies and PPG Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Minerals Technologies	$2.07 billion	0.93	-$18.40 million	($2.17)	-28.48
PPG Industries	$15.88 billion	1.70	$1.58 billion	$7.00	17.48

PPG Industries has higher revenue and earnings than Minerals Technologies. Minerals Technologies is trading at a lower price-to-earnings ratio than PPG Industries, indicating that it is currently the more affordable of the two stocks.

Summary

PPG Industries beats Minerals Technologies on 12 of the 17 factors compared between the two stocks.

About Minerals Technologies

Minerals Technologies Inc. is a global specialty minerals company that develops and produces mineral-based products, technologies and services for industrial and consumer markets. Its offerings include bentonite, calcium carbonate, talc and other mineral products, as well as related processing and application technologies. The company serves customers in industries including paper and packaging, construction, steel and foundry, environmental services, energy and consumer products. Its products are used in applications such as paper manufacturing, building materials, metal casting and household goods.

About PPG Industries

PPG Industries, Inc. is a global supplier of paints, coatings and specialty materials. Founded in 1883 as Pittsburgh Plate Glass, the company has expanded beyond its original glass business and is headquartered in Pittsburgh, Pennsylvania. PPG’s products include architectural paints and coatings, automotive finishes, aerospace coatings, protective and marine coatings, and coatings for industrial and packaging applications. Its specialty materials support uses in areas such as construction, transportation and manufacturing.