Materion (NYSE: MTRN) and TriMas (NASDAQ:TRS) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.
This is a breakdown of current ratings and recommmendations for Materion and TriMas, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional & Insider Ownership
92.1% of Materion shares are held by institutional investors. 2.9% of Materion shares are held by company insiders. Comparatively, 1.4% of TriMas shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Materion has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, TriMas has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.
Earnings & Valuation
This table compares Materion and TriMas’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Materion||$1.14 billion||0.93||$11.45 million||$1.72||30.49|
|TriMas||$817.74 million||1.60||$30.96 million||$1.40||20.39|
TriMas has lower revenue, but higher earnings than Materion. TriMas is trading at a lower price-to-earnings ratio than Materion, indicating that it is currently the more affordable of the two stocks.
This table compares Materion and TriMas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Materion pays an annual dividend of $0.40 per share and has a dividend yield of 0.8%. TriMas does not pay a dividend. Materion pays out 23.3% of its earnings in the form of a dividend. Materion has raised its dividend for 5 consecutive years.
TriMas beats Materion on 10 of the 17 factors compared between the two stocks.
Materion Corporation, through its subsidiaries, is an integrated producer of engineered materials used in a range of electrical, electronic, thermal, and structural applications. The Company operates in four segments: Performance Alloys and Composites, Advanced Materials, Precision Coatings, and Other. The Performance Alloys and Composites segment consists of businesses, such as Performance Metals and Technical Materials. The Advanced Materials segment produces chemicals, microelectronics packaging, precious metal, non-precious metal and specialty metal products. The Precision Coatings segment includes units, such as Precision Optics and Large Area Coatings. Its products include inorganic chemicals and powders, specialty coatings, specialty engineered beryllium and copper-based alloys, beryllium composites, ceramics and engineered clad, and plated metal systems.
TriMas Corporation manufactures and sells products for consumer products, aerospace, industrial, petrochemical, refinery, and oil and gas markets worldwide. The company operates through four segments: Packaging, Aerospace, Energy, and Engineered Components. The Packaging segment designs and manufactures industrial closure products, including steel drum and plastic enclosures, plastic drum closures, and plastic pail dispensers and plugs; and specialty dispensing products, such as foamers, lotion pumps, fine mist sprayers, and other packaging solutions for the cosmetic, personal care, and household product markets, as well as specialty plastic closures for bottles and jars, and dispensing pumps for the food and beverage markets. This segment primarily operates under the Rieke name. The Aerospace segment offers fasteners, collars, blind bolts, rivets, and precision-machined components for use in commercial, maintenance and repair (MRO), and military aerospace applications and platforms to OEMs, supply chain distributors, MRO/aftermarket providers, and tier one suppliers. This segment offers its products under the Monogram Aerospace Fasteners, Allfast Fastening Systems, Mac Fasteners, and Martinic Engineering brands. The Energy segment provides metallic and nonmetallic gaskets, bolts, fasteners, and specialty products for the petrochemical, petroleum refining, oil field, water/waste water treatment, and other industrial markets under the Lamons brand. The Engineered Components segment offers steel cylinders for use in the transportation, storage, and dispensing of compressed gases under the Norris Cylinder name; and various natural gas powered wellhead engines, compressors, and replacement parts for use in oil and natural gas production, and other industrial and commercial markets under the Arrow Engine name. It sells its products through a direct sales force, third-party agents, distributors, and licensees. The company is based in Bloomfield Hills, Michigan.
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