Teck Resources (NYSE: TECK) and Ciner Resources (NYSE:CINR) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Profitability

This table compares Teck Resources and Ciner Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teck Resources 22.03% 13.66% 7.34%
Ciner Resources 8.29% 16.54% 9.22%

Dividends

Teck Resources pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Ciner Resources pays an annual dividend of $2.27 per share and has a dividend yield of 8.9%. Teck Resources pays out 4.7% of its earnings in the form of a dividend. Ciner Resources pays out 109.7% 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 Recommendations

This is a summary of recent ratings for Teck Resources and Ciner Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teck Resources 1 6 9 1 2.59
Ciner Resources 0 2 1 0 2.33

Teck Resources presently has a consensus target price of $31.61, suggesting a potential upside of 8.00%. Ciner Resources has a consensus target price of $28.67, suggesting a potential upside of 12.29%. Given Ciner Resources’ higher probable upside, analysts clearly believe Ciner Resources is more favorable than Teck Resources.

Risk & Volatility

Teck Resources has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Ciner Resources has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Institutional & Insider Ownership

56.3% of Teck Resources shares are held by institutional investors. Comparatively, 10.1% of Ciner Resources shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Teck Resources and Ciner Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teck Resources $9.29 billion 1.78 $1.94 billion $3.43 8.53
Ciner Resources $497.30 million 1.01 $41.60 million $2.07 12.33

Teck Resources has higher revenue and earnings than Ciner Resources. Teck Resources is trading at a lower price-to-earnings ratio than Ciner Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Teck Resources beats Ciner Resources on 11 of the 16 factors compared between the two stocks.

Teck Resources Company Profile

Teck Resources Limited researches, explores for, develops, and produces natural resources in the Americas, the Asia Pacific, and Europe. It operates through five segments: Steelmaking Coal, Copper, Zinc, Energy, and Corporate. The company's principal products comprise steelmaking coal; copper concentrates and refined copper cathodes; refined zinc and zinc concentrates; energy products, such as bitumen; and lead concentrates. It also produces molybdenum, gold, silver, germanium, indium, mercury, and cadmium, as well as chemicals, industrial products, and fertilizers. In addition, the company holds interest in oil sands projects and other interests in the Athabasca region of Alberta; and owns interest in exploration and development projects in Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. Teck Resources Limited was founded in 1906 and is based in Vancouver, Canada.

Ciner Resources Company Profile

Ciner Resources LP engages in the trona ore mining and soda ash production businesses in the United States and internationally. It processes trona ore into soda ash, which is a raw material in flat glass, container glass, detergents, chemicals, paper, and other consumer and industrial products. The company has approximately 23,500 acres of leased and licensed subsurface mining areas in the Green River Basin of Wyoming. As of December 31, 2017, it had proven and probable reserves of approximately 240.1 million short tons of trona. Ciner Resource Partners LLC serves as the general partner of the company. The company was formerly known as OCI Resources LP and changed its name to Ciner Resources LP in November 2015. Ciner Resources LP is based in Atlanta, Georgia. Ciner Resources LP is a subsidiary of Ciner Wyoming Holding Co.

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