Critical Contrast: Sociedad Quimica y Minera (NYSE:SQM) versus Minerals Technologies (NYSE:MTX)

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

Insider and Institutional Ownership

97.3% of Minerals Technologies shares are owned by institutional investors. Comparatively, 12.4% of Sociedad Quimica y Minera shares are owned by institutional investors. 3.7% of Minerals Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

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

Earnings and Valuation

This table compares Minerals Technologies and Sociedad Quimica y Minera”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	1.14	-$18.40 million	($2.17)	-34.91
Sociedad Quimica y Minera	$4.58 billion	4.46	$588.14 million	$2.85	25.09

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.

Dividends

Minerals Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. Sociedad Quimica y Minera pays an annual dividend of $2.65 per share and has a dividend yield of 3.7%. Minerals Technologies pays out -22.1% of its earnings in the form of a dividend. 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 has raised its dividend for 2 consecutive years.

Volatility & Risk

Minerals Technologies has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Sociedad Quimica y Minera has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Minerals Technologies and Sociedad Quimica y Minera, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Minerals Technologies	1	1	1	0	2.00
Sociedad Quimica y Minera	1	8	5	1	2.40

Minerals Technologies presently has a consensus price target of $90.00, suggesting a potential upside of 18.81%. Sociedad Quimica y Minera has a consensus price target of $73.58, suggesting a potential upside of 2.92%. Given Minerals Technologies’ higher probable upside, analysts plainly believe Minerals Technologies is more favorable than Sociedad Quimica y Minera.

Summary

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

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.

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.