Materion (NYSE:MTRN) versus Coeur Mining (NYSE:CDE) Head-To-Head Comparison

Materion (NYSE:MTRN) and Coeur Mining (NYSE:CDE) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Materion and Coeur Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Materion	0	1	3	1	3.00
Coeur Mining	0	4	9	1	2.79

Materion presently has a consensus price target of $310.00, indicating a potential upside of 18.03%. Coeur Mining has a consensus price target of $25.50, indicating a potential upside of 42.38%. Given Coeur Mining’s higher probable upside, analysts clearly believe Coeur Mining is more favorable than Materion.

Profitability

This table compares Materion and Coeur Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Materion	4.29%	13.38%	6.98%
Coeur Mining	26.82%	11.03%	7.57%

Insider and Institutional Ownership

93.6% of Materion shares are held by institutional investors. Comparatively, 63.0% of Coeur Mining shares are held by institutional investors. 2.8% of Materion shares are held by insiders. Comparatively, 0.9% of Coeur Mining shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Materion and Coeur Mining”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Materion	$2.10 billion	2.61	$74.82 million	$4.29	61.22
Coeur Mining	$2.07 billion	8.89	$585.87 million	$1.17	15.31

Coeur Mining has lower revenue, but higher earnings than Materion. Coeur Mining is trading at a lower price-to-earnings ratio than Materion, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Materion has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Coeur Mining has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Dividends

Materion pays an annual dividend of $0.58 per share and has a dividend yield of 0.2%. Coeur Mining pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Materion pays out 13.5% of its earnings in the form of a dividend. Coeur Mining pays out 3.4% 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. Materion has increased its dividend for 13 consecutive years. Coeur Mining is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Coeur Mining beats Materion on 9 of the 17 factors compared between the two stocks.

About Materion

Materion Corporation, together with its subsidiaries, produces advanced engineered materials used in semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center in the United States, Asia, Europe, and internationally. The company operates in four segments: Performance Materials, Electronic Materials, Precision Optics, and Other. The company provides advanced engineered solutions comprising beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes; engineering and product development services; alloyed metals, beryllium products, and beryllium hydroxide; precision strip, rod, and wire products, as well as engineered strip metal products; and ToughMet alloys and SupremEX aluminum silicon carbide metal matrix composite formulation products. It operates the bertrandite ore mine and refinery located in Utah that provides feedstock hydroxide for its beryllium businesses and external sale. In addition, it produces advanced chemicals, microelectronics packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, high temperature braze materials, and ultra-pure wire. Further, the company designs and produces precision thin film coatings, optical filters, and assemblies. The company sells its products directly from its facilities, as well as through company-owned service centers, outside distributors, agents, direct sales offices, and independent sales representatives. The company was formerly known as Brush Engineered Materials Inc. and changed its name to Materion Corporation in March 2011. Materion Corporation was founded in 1921 and is headquartered in Mayfield Heights, Ohio.

About Coeur Mining

Coeur Mining, Inc. explores for precious metals in the United States, Canada, and Mexico. The company primarily explores for gold, silver, zinc, and lead properties. It markets and sells its concentrates to third-party customers, smelters, under off-take agreements. The company was formerly known as Coeur d'Alene Mines Corporation and changed its name to Coeur Mining, Inc. in May 2013. Coeur Mining, Inc. was incorporated in 1928 and is headquartered in Chicago, Illinois.