Sociedad Química y Minera de Chile (NYSE:SQM) and Teck Resources (NYSE:TECK) are both large-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Institutional & Insider Ownership
12.8% of Sociedad Química y Minera de Chile shares are owned by institutional investors. Comparatively, 47.1% of Teck Resources shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
Sociedad Química y Minera de Chile pays an annual dividend of $0.29 per share and has a dividend yield of 0.5%. Teck Resources pays an annual dividend of $0.15 per share and has a dividend yield of 0.7%. Sociedad Química y Minera de Chile pays out 27.4% of its earnings in the form of a dividend. Teck Resources pays out 6.8% 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. Teck Resources has increased its dividend for 1 consecutive years. Teck Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Sociedad Química y Minera de Chile has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Teck Resources has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Sociedad Química y Minera de Chile and Teck Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Sociedad Química y Minera de Chile | 1 | 0 | 4 | 0 | 2.60 |
Teck Resources | 0 | 7 | 10 | 0 | 2.59 |
Sociedad Química y Minera de Chile currently has a consensus price target of $53.50, suggesting a potential downside of 2.90%. Teck Resources has a consensus price target of $25.60, suggesting a potential upside of 15.16%. Given Teck Resources' higher possible upside, analysts plainly believe Teck Resources is more favorable than Sociedad Química y Minera de Chile.
Profitability
This table compares Sociedad Química y Minera de Chile and Teck Resources' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Sociedad Química y Minera de Chile | 9.26% | 9.93% | 4.36% |
Teck Resources | -14.37% | 2.49% | 1.38% |
Earnings and Valuation
This table compares Sociedad Química y Minera de Chile and Teck Resources' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Sociedad Química y Minera de Chile | $1.94 billion | 7.46 | $278.11 million | $1.06 | 51.98 |
Teck Resources | $8.99 billion | 1.29 | $-455,930,000.00 | $2.22 | 10.01 |
Sociedad Química y Minera de Chile has higher earnings, but lower revenue than Teck Resources. Teck Resources is trading at a lower price-to-earnings ratio than Sociedad Química y Minera de Chile, indicating that it is currently the more affordable of the two stocks.
Summary
Teck Resources beats Sociedad Química y Minera de Chile on 9 of the 16 factors compared between the two stocks.