Critical Analysis: Sisecam Resources (NYSE:SIRE) and Martin Marietta Materials (NYSE:MLM)

Sisecam Resources (NYSE:SIREGet Rating) and Martin Marietta Materials (NYSE:MLMGet Rating) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Risk & Volatility

Sisecam Resources has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Martin Marietta Materials has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500.

Profitability

This table compares Sisecam Resources and Martin Marietta Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sisecam Resources 8.33% 16.33% 9.94%
Martin Marietta Materials 13.59% 11.43% 5.27%

Insider and Institutional Ownership

93.5% of Martin Marietta Materials shares are held by institutional investors. 0.6% of Martin Marietta Materials shares are held by 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sisecam Resources and Martin Marietta Materials, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sisecam Resources 0 0 0 0 N/A
Martin Marietta Materials 0 0 10 0 3.00

Martin Marietta Materials has a consensus target price of $400.33, indicating a potential upside of 9.58%. Given Martin Marietta Materials’ higher possible upside, analysts clearly believe Martin Marietta Materials is more favorable than Sisecam Resources.

Earnings & Valuation

This table compares Sisecam Resources and Martin Marietta Materials’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sisecam Resources $540.10 million 0.82 $24.40 million $2.86 7.80
Martin Marietta Materials $5.41 billion 4.19 $702.50 million $13.43 27.20

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

Dividends

Sisecam Resources pays an annual dividend of $2.00 per share and has a dividend yield of 9.0%. Martin Marietta Materials pays an annual dividend of $2.64 per share and has a dividend yield of 0.7%. Sisecam Resources pays out 69.9% of its earnings in the form of a dividend. Martin Marietta Materials pays out 19.7% 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. Martin Marietta Materials has raised its dividend for 7 consecutive years.

Summary

Martin Marietta Materials beats Sisecam Resources on 13 of the 16 factors compared between the two stocks.

About Sisecam Resources

(Get Rating)

Sisecam Resources LP, together with its subsidiaries, 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 holds approximately 23,500 acres of leased and licensed subsurface mining areas in the Green River Basin of Wyoming. As of December 31, 2021, it had proven and probable reserves of approximately 220.0 million short tons of trona. The company was formerly known as Ciner Resources LP and changed its name to Sisecam Resources LP in February 2022. Sisecam Resources LP was incorporated in 2013 and is headquartered in Atlanta, Georgia. Sisecam Resources LP operates as a subsidiary of Ciner Wyoming Holding Co.

About Martin Marietta Materials

(Get Rating)

Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally. It offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; and Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. The company also produces magnesia-based chemicals products that are used in industrial, agricultural, and environmental applications; and dolomitic lime primarily to customers for steel production and soil stabilization. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. The company was founded in 1939 and is headquartered in Raleigh, North Carolina.

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