Teck Resources (NYSE:TECK) and Sociedad Química y Minera de Chile (NYSE:SQM) are both large-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Profitability
This table compares Teck Resources and Sociedad Química y Minera de Chile's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Teck Resources | -14.37% | 2.49% | 1.38% |
Sociedad Química y Minera de Chile | 9.26% | 9.93% | 4.36% |
Institutional and Insider Ownership
47.1% of Teck Resources shares are held by institutional investors. Comparatively, 12.8% of Sociedad Química y Minera de Chile shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Teck Resources has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Sociedad Química y Minera de Chile has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.
Dividends
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 an annual dividend of $0.29 per share and has a dividend yield of 0.5%. Teck Resources pays out 6.8% of its earnings in the form of a dividend. Sociedad Química y Minera de Chile pays out 27.4% 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.
Analyst Ratings
This is a summary of current ratings and recommmendations for Teck Resources and Sociedad Química y Minera de Chile, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Teck Resources | 0 | 7 | 10 | 0 | 2.59 |
Sociedad Química y Minera de Chile | 1 | 0 | 4 | 0 | 2.60 |
Teck Resources presently has a consensus price target of $25.6667, suggesting a potential upside of 14.33%. Sociedad Química y Minera de Chile has a consensus price target of $53.50, suggesting a potential downside of 3.88%. Given Teck Resources' higher probable upside, equities research analysts clearly believe Teck Resources is more favorable than Sociedad Química y Minera de Chile.
Valuation & Earnings
This table compares Teck Resources and Sociedad Química y Minera de Chile's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Teck Resources | $8.99 billion | 1.31 | $-455,930,000.00 | $2.22 | 10.11 |
Sociedad Química y Minera de Chile | $1.94 billion | 7.54 | $278.11 million | $1.06 | 52.51 |
Sociedad Química y Minera de Chile has lower revenue, but higher earnings 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.