Sensient Technologies (NYSE: SXT) and Minerals Technologies (NYSE:MTX) are both mid-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.
Insider & Institutional Ownership
92.1% of Sensient Technologies shares are held by institutional investors. Comparatively, 96.1% of Minerals Technologies shares are held by institutional investors. 1.0% of Sensient Technologies shares are held by insiders. Comparatively, 2.2% of Minerals Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Sensient Technologies and Minerals Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Sensient Technologies has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Minerals Technologies has a beta of 2.29, indicating that its stock price is 129% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Sensient Technologies and Minerals Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sensient Technologies presently has a consensus target price of $90.77, suggesting a potential upside of 24.75%. Minerals Technologies has a consensus target price of $80.00, suggesting a potential upside of 12.44%. Given Sensient Technologies’ higher probable upside, research analysts plainly believe Sensient Technologies is more favorable than Minerals Technologies.
Sensient Technologies pays an annual dividend of $1.32 per share and has a dividend yield of 1.8%. Minerals Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Sensient Technologies pays out 65.0% of its earnings in the form of a dividend. Minerals Technologies pays out 3.7% 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. Minerals Technologies has increased its dividend for 6 consecutive years.
Valuation & Earnings
This table compares Sensient Technologies and Minerals Technologies’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sensient Technologies||$1.36 billion||2.32||$89.60 million||$2.03||35.84|
|Minerals Technologies||$1.68 billion||1.50||$195.10 million||$5.47||13.01|
Minerals Technologies has higher revenue and earnings than Sensient Technologies. Minerals Technologies is trading at a lower price-to-earnings ratio than Sensient Technologies, indicating that it is currently the more affordable of the two stocks.
Minerals Technologies beats Sensient Technologies on 9 of the 16 factors compared between the two stocks.
Sensient Technologies Company Profile
Sensient Technologies Corporation is a manufacturer and marketer of colors, flavors and fragrances. The Company uses technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, specialty inks and colors, and other specialty and fine chemicals. The Company’s three segments include the Flavors & Fragrances Group and the Color Group, which are managed on a product-and-services basis, and the Asia Pacific Group, which is managed on a geographic basis. The Company’s principal products include flavors, flavor enhancers and bionutrients; fragrances, aroma chemicals and essential oils; natural ingredients, including dehydrated vegetables and other food ingredients; natural and synthetic food and beverage colors; cosmetic colors and ingredients and pharmaceutical excipients and ingredients, and technical colors, specialty inks and colors, and specialty dyes and pigments.
Minerals Technologies Company Profile
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.
Receive News & Ratings for Sensient Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sensient Technologies and related companies with MarketBeat.com's FREE daily email newsletter.