Analyzing Minerals Technologies (MTX) & Kronos Worldwide (KRO)
Minerals Technologies (NYSE: MTX) and Kronos Worldwide (NYSE:KRO) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
94.4% of Minerals Technologies shares are held by institutional investors. Comparatively, 15.4% of Kronos Worldwide shares are held by institutional investors. 2.2% of Minerals Technologies shares are held by company insiders. Comparatively, 0.1% of Kronos Worldwide shares are held by company 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.
Earnings and Valuation
This table compares Minerals Technologies and Kronos Worldwide’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Minerals Technologies||$1.62 billion||1.58||$349.20 million||$4.40||16.57|
|Kronos Worldwide||$1.50 billion||1.84||$240.60 million||$2.41||9.86|
Minerals Technologies has higher revenue and earnings than Kronos Worldwide. Kronos Worldwide is trading at a lower price-to-earnings ratio than Minerals Technologies, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Minerals Technologies has a beta of 2.23, suggesting that its stock price is 123% more volatile than the S&P 500. Comparatively, Kronos Worldwide has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500.
Minerals Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Kronos Worldwide pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Minerals Technologies pays out 4.5% of its earnings in the form of a dividend. Kronos Worldwide pays out 24.9% 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.
This table compares Minerals Technologies and Kronos Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Minerals Technologies and Kronos Worldwide, as provided by MarketBeat.com.
|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 9.74%. Kronos Worldwide has a consensus price target of $17.00, indicating a potential downside of 28.48%. Given Minerals Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Minerals Technologies is more favorable than Kronos Worldwide.
Minerals Technologies beats Kronos Worldwide on 10 of the 16 factors compared between the two stocks.
About Minerals Technologies
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.
About Kronos Worldwide
Kronos Worldwide, Inc. (Kronos) is a producer and marketer of titanium dioxide (TiO2) pigments, a base industrial product that is used in a range of applications. The Company, along with its distributors and agents, sells and provides technical services for its products with sales in Europe and North America. It offers its customers a portfolio of products that include TiO2 pigment grades under the Kronos brand, which provides a range of performance properties. It offers its products to domestic and international paint, plastics, decorative laminate and paper manufacturers. It ships TiO2 to its customers in either a powder or slurry form through rail, truck or ocean carrier. It sells and provides technical services for its products in three end use markets, which include coatings, plastics and paper. It produces TiO2 in two crystalline forms, which include rutile and anatase. Rutile TiO2 is manufactured using both a chloride production process and a sulfate production process.
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