LYNAS CORP LTD/S (OTCMKTS:LYSDY) and Sociedad Quimica y Minera de Chile (NYSE:SQM) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.
Sociedad Quimica y Minera de Chile pays an annual dividend of $0.80 per share and has a dividend yield of 1.9%. LYNAS CORP LTD/S does not pay a dividend. Sociedad Quimica y Minera de Chile pays out 49.1% of its earnings in the form of a dividend.
This is a summary of current recommendations for LYNAS CORP LTD/S and Sociedad Quimica y Minera de Chile, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LYNAS CORP LTD/S||0||0||0||0||N/A|
|Sociedad Quimica y Minera de Chile||1||3||5||0||2.44|
Sociedad Quimica y Minera de Chile has a consensus target price of $51.60, suggesting a potential upside of 24.19%. Given Sociedad Quimica y Minera de Chile’s higher possible upside, analysts plainly believe Sociedad Quimica y Minera de Chile is more favorable than LYNAS CORP LTD/S.
Valuation and Earnings
This table compares LYNAS CORP LTD/S and Sociedad Quimica y Minera de Chile’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LYNAS CORP LTD/S||$290.04 million||2.57||$41.16 million||N/A||N/A|
|Sociedad Quimica y Minera de Chile||$2.16 billion||5.07||$427.69 million||$1.63||25.49|
Sociedad Quimica y Minera de Chile has higher revenue and earnings than LYNAS CORP LTD/S.
Institutional and Insider Ownership
10.6% of Sociedad Quimica y Minera de Chile shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares LYNAS CORP LTD/S and Sociedad Quimica y Minera de Chile’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LYNAS CORP LTD/S||N/A||N/A||N/A|
|Sociedad Quimica y Minera de Chile||19.41%||20.13%||10.36%|
Volatility and Risk
LYNAS CORP LTD/S has a beta of 2.4, suggesting that its stock price is 140% more volatile than the S&P 500. Comparatively, Sociedad Quimica y Minera de Chile has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
Sociedad Quimica y Minera de Chile beats LYNAS CORP LTD/S on 10 of the 12 factors compared between the two stocks.
LYNAS CORP LTD/S Company Profile
Lynas Corporation Limited, together with its subsidiaries, engages in the exploration, development, mining, extraction, and processing of rare earth minerals primarily in Australia and Malaysia. It also produces and supplies neodymium-praseodymium material. The company holds interest in the Mount Weld project in Western Australia. It also owns, develops, and operates Lynas advanced materials plant located in Kuantan, Malaysia; and Mount Weld concentration plant located in Western Australia. In addition, the company offers corporate services. The company was incorporated in 1983 and is headquartered in Kuantan, Malaysia.
Sociedad Quimica y Minera de Chile Company Profile
Sociedad Química y Minera de Chile S.A. produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, industrial chemicals, potassium, and other products and services. The company offers specialty plant nutrients, including potassium nitrate, sodium nitrate, sodium potassium nitrate, specialty mixes, and other specialty fertilizers for crops, such as vegetables, fruits, and flowers under the Ultrasol, Qrop, Speedfol, and Allganic brands. It also provides iodine and its derivatives for use in medical, pharmaceutical, agricultural, and industrial applications comprising x-ray contrast media, polarizing films for LCD and LED, antiseptics, biocides and disinfectants, pharmaceutical synthesis, electronics, pigments, and dye components under the QIodine brand. In addition, the company offers lithium carbonates for various applications that include electrochemical materials for batteries, frits for the ceramic and enamel industries, heat-resistant glass, air conditioning chemicals, continuous casting powder for steel extrusion, primary aluminum smelting process, pharmaceuticals, and lithium derivatives. Further, it supplies lithium hydroxide for the lubricating greases industry, as well as cathodes for batteries. The company's lithium products are marketed under the QLithiumCarbonate, QLithiumHydroxide, and QLubelith brands. Additionally, it offers potassium chloride and potassium sulfate for various crops; and industrial chemicals, including sodium nitrate, potassium nitrate, potassium chloride, and solar salts under the QSodiumNitrate, QPotassiumNitrate, and QPotassiumChloride brands. The company sells its products through sales offices and a network of distributors in Chile, Latin America, the Caribbean, Europe, North America, Asia, Central and South America, and internationally. Sociedad Química y Minera de Chile S.A. was founded in 1968 and is headquartered in Santiago, Chile.
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