Minerals Technologies (NYSE: MTX) and Ferro Corporation (NYSE:FOE) are both basic 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.
Institutional and Insider Ownership
94.4% of Minerals Technologies shares are held by institutional investors. Comparatively, 96.6% of Ferro Corporation shares are held by institutional investors. 2.2% of Minerals Technologies shares are held by insiders. Comparatively, 2.0% of Ferro Corporation 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.
Volatility and Risk
Minerals Technologies has a beta of 2.21, indicating that its stock price is 121% more volatile than the S&P 500. Comparatively, Ferro Corporation has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Minerals Technologies and Ferro Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Minerals Technologies currently has a consensus price target of $80.00, indicating a potential upside of 13.39%. Ferro Corporation has a consensus price target of $22.00, indicating a potential upside of 2.09%. Given Minerals Technologies’ higher probable upside, research analysts clearly believe Minerals Technologies is more favorable than Ferro Corporation.
Valuation and Earnings
This table compares Minerals Technologies and Ferro Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Minerals Technologies||$1.62 billion||1.53||$349.20 million||$4.40||16.03|
|Ferro Corporation||$1.24 billion||1.45||$174.53 million||$0.15||143.68|
Minerals Technologies has higher revenue and earnings than Ferro Corporation. Minerals Technologies is trading at a lower price-to-earnings ratio than Ferro Corporation, indicating that it is currently the more affordable of the two stocks.
Minerals Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Ferro Corporation does not pay a dividend. Minerals Technologies pays out 4.5% of its earnings in the form of a dividend.
This table compares Minerals Technologies and Ferro Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Minerals Technologies beats Ferro Corporation on 9 of the 15 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.
Ferro Corporation Company Profile
Ferro Corporation (Ferro) produces specialty materials that are sold to a range of manufacturers. The Company’s segments include Performance Coatings; Performance Colors and Glass, and Pigments, Powders and Oxides. Its Performance Coatings segment includes Tile Coating Systems and Porcelain Enamel. Its manufacturers make products for various end-use markets. The Company’s products fall into two general categories: functional coatings, which perform specific functions in the manufacturing processes and end products of its customers, and color solutions, which provide aesthetic and performance characteristics to its customers’ products. Its products are used in a range of product applications in markets, including appliances, automobiles, building and renovation, electronics, household furnishings, industrial products and packaging.
Receive News & Ratings for Minerals Technologies Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Minerals Technologies Inc. and related companies with MarketBeat.com's FREE daily email newsletter.