Head to Head Review: Sociedad Quimica y Minera (SQM) & Agrium (AGU)

Sociedad Quimica y Minera (NYSE: SQM) and Agrium (NYSE:AGU) are both mid-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitabiliy, earnings, dividends, analyst recommendations, institutional ownership, risk and valuation.

Dividends

Sociedad Quimica y Minera pays an annual dividend of $1.16 per share and has a dividend yield of 3.1%. Agrium pays an annual dividend of $3.50 per share and has a dividend yield of 3.6%. Sociedad Quimica y Minera pays out 94.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Agrium pays out 83.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sociedad Quimica y Minera has raised its dividend for 5 consecutive years and Agrium has raised its dividend for 3 consecutive years. Agrium is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Sociedad Quimica y Minera and Agrium’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sociedad Quimica y Minera 15.53% 13.99% 7.57%
Agrium 4.25% 9.72% 3.56%

Insider and Institutional Ownership

15.8% of Sociedad Quimica y Minera shares are owned by institutional investors. Comparatively, 69.1% of Agrium shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Sociedad Quimica y Minera has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Agrium has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sociedad Quimica y Minera and Agrium, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sociedad Quimica y Minera 0 4 1 0 2.20
Agrium 1 7 8 0 2.44

Sociedad Quimica y Minera currently has a consensus price target of $36.00, suggesting a potential downside of 4.08%. Agrium has a consensus price target of $104.50, suggesting a potential upside of 6.29%. Given Agrium’s stronger consensus rating and higher probable upside, analysts clearly believe Agrium is more favorable than Sociedad Quimica y Minera.

Earnings and Valuation

This table compares Sociedad Quimica y Minera and Agrium’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sociedad Quimica y Minera $2.08 billion 4.75 $810.31 million $1.23 30.51
Agrium $13.66 billion 0.99 $1.57 billion $4.21 23.35

Agrium has higher revenue and earnings than Sociedad Quimica y Minera. Agrium is trading at a lower price-to-earnings ratio than Sociedad Quimica y Minera, indicating that it is currently the more affordable of the two stocks.

Summary

Agrium beats Sociedad Quimica y Minera on 9 of the 16 factors compared between the two stocks.

About Sociedad Quimica y Minera

Sociedad Quimica y Minera de Chile S.A. (SQM), is a producer of potassium nitrate and iodine. The Company produces specialty plant nutrients, iodine derivatives, lithium and its derivatives, potassium chloride, potassium sulfate and certain industrial chemicals. Its segments include specialty plant nutrients, industrial chemicals, iodine and derivatives, lithium and derivatives, potassium, and other products and services. Specialty plant nutrients are fertilizers that enable farmers to improve yields and the quality of certain crops. Industrial chemicals have a range of applications in chemical processes, such as the manufacturing of glass and industrial nitrates. Iodine and its derivatives are used in the X-ray contrast media and biocides industries, among others. Lithium and its derivatives are used in batteries, greases and frits for production of ceramics. Potassium chloride is a commodity fertilizer that is produced and sold by the Company across the world.

About Agrium

Agrium Inc. is a retailer of agricultural products and services in the United States, Canada, Australia, Argentina, Brazil, Chile and Uruguay and a multi-national producer and wholesale marketer of nutrients for agricultural and industrial markets. The Company’s segments include Retail and Wholesale. As of December 31, 2016, its Retail business unit marketed crop nutrients, crop protection products, seed, merchandise, application and other agronomic services through 1,500 retail locations in the United States, Canada, Australia, Argentina, Brazil, Chile and Uruguay. Its Wholesale business unit manufactures, mines and markets a range of nutrients, including nitrogen-based, potash and phosphate-based crop nutrient products. As of December 31, 2016, its Wholesale business unit owned and operated five North American nitrogen facilities, four located in Alberta, Canada and one in Borger, Texas, United States.

Receive News & Ratings for Sociedad Quimica y Minera S.A. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sociedad Quimica y Minera S.A. and related companies with our FREE daily email newsletter.

 


Latest News

Todd Frazier Traded to Yankees for Blake Rutherford and Others
Todd Frazier Traded to Yankees for Blake Rutherford and Others
Tigers Would Include Cash in Verlander Deal and Other MLB Trade Rumors
Tigers Would Include Cash in Verlander Deal and Other MLB Trade Rumors
Todd Frazier Trade to Boston Appears to Be Decided
Todd Frazier Trade to Boston Appears to Be Decided
Chicago White Sox Continue Rebuild Without Jose Quintana
Chicago White Sox Continue Rebuild Without Jose Quintana
Mike Trout Returns from Injury With Single and Stole Base
Mike Trout Returns from Injury With Single and Stole Base
Chicago Cubs Strengthen Rotation Through Trade for Jose Quintana
Chicago Cubs Strengthen Rotation Through Trade for Jose Quintana


Leave a Reply

 
© 2006-2017 BBNS.