Ciner Resources (NYSE: CINR) and Fairmount Santrol (NYSE:FMSA) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Ciner Resources pays an annual dividend of $2.27 per share and has a dividend yield of 8.3%. Fairmount Santrol does not pay a dividend. Ciner Resources pays out 109.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Ciner Resources and Fairmount Santrol’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
10.1% of Ciner Resources shares are held by institutional investors. Comparatively, 71.5% of Fairmount Santrol shares are held by institutional investors. 9.8% of Fairmount Santrol shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Ciner Resources has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Fairmount Santrol has a beta of 2.13, meaning that its share price is 113% more volatile than the S&P 500.
Valuation and Earnings
This table compares Ciner Resources and Fairmount Santrol’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ciner Resources||$497.30 million||1.08||$41.60 million||$2.07||13.19|
|Fairmount Santrol||$959.79 million||1.32||$53.78 million||$0.24||23.46|
Fairmount Santrol has higher revenue and earnings than Ciner Resources. Ciner Resources is trading at a lower price-to-earnings ratio than Fairmount Santrol, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Ciner Resources and Fairmount Santrol, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ciner Resources presently has a consensus price target of $29.67, indicating a potential upside of 8.66%. Fairmount Santrol has a consensus price target of $6.23, indicating a potential upside of 10.61%. Given Fairmount Santrol’s stronger consensus rating and higher possible upside, analysts plainly believe Fairmount Santrol is more favorable than Ciner Resources.
Fairmount Santrol beats Ciner Resources on 12 of the 16 factors compared between the two stocks.
Ciner Resources Company Profile
Ciner Resources LP 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 has approximately 23,500 acres of leased and licensed subsurface mining areas in the Green River Basin of Wyoming. As of December 31, 2017, it had proven and probable reserves of approximately 240.1 million short tons of trona. Ciner Resource Partners LLC serves as the general partner of the company. The company was formerly known as OCI Resources LP and changed its name to Ciner Resources LP in November 2015. Ciner Resources LP is based in Atlanta, Georgia. Ciner Resources LP is a subsidiary of Ciner Wyoming Holding Co.
Fairmount Santrol Company Profile
Fairmount Santrol Holdings Inc., together with its subsidiaries, provides sand-based proppant solutions for exploration and production companies. The company operates in two segments, Proppant Solutions and Industrial & Recreational Products. The Proppant Solutions segment primarily provides sand-based proppants for use in hydraulic fracturing operations in the United States, Canada, Argentina, Mexico, China, and northern Europe. Its products include northern white frac sand, API-spec brown sand, and coated sand products; and Propel SSP product that utilizes a polymer coating applied to a proppant substrate. The Industrial & Recreational Products segment offers raw, coated, and custom blended sands for use in building products, foundry, glass, turf and landscape, and filtration industries primarily in North America. Fairmount Santrol Holdings Inc. also supplies proppants to oilfield service companies. The company was formerly known as FMSA Holdings Inc. and changed its name to Fairmount Santrol Holdings Inc. in July 2015. Fairmount Santrol Holdings Inc. was incorporated in 1986 and is headquartered in Chesterland, Ohio.
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