Critical Comparison: Minerals Technologies (MTX) vs. Orion Engineered Carbons S.A (OEC)

Minerals Technologies (NYSE: MTX) and Orion Engineered Carbons S.A (NYSE:OEC) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Institutional and Insider Ownership

94.4% of Minerals Technologies shares are held by institutional investors. Comparatively, 37.2% of Orion Engineered Carbons S.A shares are held by institutional investors. 2.2% of Minerals Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Minerals Technologies has a beta of 2.23, meaning that its share price is 123% more volatile than the S&P 500. Comparatively, Orion Engineered Carbons S.A has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.

Dividends

Minerals Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Orion Engineered Carbons S.A pays an annual dividend of $0.81 per share and has a dividend yield of 3.5%. Minerals Technologies pays out 4.5% of its earnings in the form of a dividend. Orion Engineered Carbons S.A pays out 95.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Minerals Technologies and Orion Engineered Carbons S.A, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Minerals Technologies 0 0 1 0 3.00
Orion Engineered Carbons S.A 0 1 3 0 2.75

Minerals Technologies presently has a consensus price target of $80.00, suggesting a potential upside of 11.34%. Orion Engineered Carbons S.A has a consensus price target of $23.50, suggesting a potential upside of 0.43%. Given Minerals Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Minerals Technologies is more favorable than Orion Engineered Carbons S.A.

Valuation & Earnings

This table compares Minerals Technologies and Orion Engineered Carbons S.A’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Minerals Technologies $1.62 billion 1.56 $349.20 million $4.40 16.33
Orion Engineered Carbons S.A $1.37 billion 1.01 $269.86 million $0.85 27.53

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

Profitability

This table compares Minerals Technologies and Orion Engineered Carbons S.A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Minerals Technologies 9.62% 15.04% 5.56%
Orion Engineered Carbons S.A 4.12% 148.13% 8.81%

Summary

Minerals Technologies beats Orion Engineered Carbons S.A on 11 of the 16 factors compared between the two stocks.

Minerals Technologies Company Profile

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.

Orion Engineered Carbons S.A Company Profile

Orion Engineered Carbons S.A. is a producer of carbon black. The Company operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.

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