Sociedad Quimica y Minera (NYSE:SQM – Get Free Report) and Ecovyst (NYSE:ECVT – Get Free Report) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.
Profitability
This table compares Sociedad Quimica y Minera and Ecovyst’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sociedad Quimica y Minera | 12.12% | 9.79% | 4.54% |
| Ecovyst | -14.34% | 8.93% | 3.38% |
Volatility and Risk
Sociedad Quimica y Minera has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Ecovyst has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sociedad Quimica y Minera | 1 | 7 | 4 | 0 | 2.25 |
| Ecovyst | 1 | 1 | 4 | 0 | 2.50 |
Sociedad Quimica y Minera currently has a consensus price target of $59.75, suggesting a potential downside of 14.82%. Ecovyst has a consensus price target of $11.60, suggesting a potential upside of 16.63%. Given Ecovyst’s stronger consensus rating and higher probable upside, analysts clearly believe Ecovyst is more favorable than Sociedad Quimica y Minera.
Insider and Institutional Ownership
12.4% of Sociedad Quimica y Minera shares are owned by institutional investors. Comparatively, 86.7% of Ecovyst shares are owned by institutional investors. 1.5% of Ecovyst shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Sociedad Quimica y Minera and Ecovyst”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sociedad Quimica y Minera | $4.53 billion | 4.42 | $685.12 million | $1.83 | 38.33 |
| Ecovyst | $704.50 million | 1.61 | -$6.65 million | ($0.93) | -10.69 |
Sociedad Quimica y Minera has higher revenue and earnings than Ecovyst. Ecovyst is trading at a lower price-to-earnings ratio than Sociedad Quimica y Minera, indicating that it is currently the more affordable of the two stocks.
Summary
Sociedad Quimica y Minera beats Ecovyst on 8 of the 13 factors compared between the two stocks.
About Sociedad Quimica y Minera
Sociedad Química y Minera de Chile S.A. operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders. In addition, the company produces lithium carbonate and lithium hydroxide which are used in the production of cathode material for secondary batteries; lithium chloride; and basic lithium chemicals and lithium derivatives used in lubricating greases for heat-resistant glass, chips for the ceramic and glazing industry, and air conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. Further, it produces potassium sulfate; and potassium chloride which is used as a fertilizer for the application of potassium to different crops. Additionally, the company produces and markets industrial chemicals, such as sodium nitrate mainly used in the production of glass and explosives, metal processing and recycling, and production of insulating materials and adhesives; potassium nitrate used as a raw material to produce frits and special glass, as well as in the enamel, metal treatment, and pyrotechnic sectors; solar salts used as a thermal storage medium in solar power generation plants; and potassium chloride as an additive in oil drilling and food processing sectors. Furthermore, it is involved in the commercialization of third-party fertilizers; and exploration of copper, gold, and silver deposits. The company was founded in 1926 and is headquartered in Santiago, Chile.
About Ecovyst
Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.
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