Teck Resources (NYSE: TECK) and Martin Marietta Materials (NYSE:MLM) are both large-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, dividends and profitability.
Risk and Volatility
Teck Resources has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Martin Marietta Materials has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
This table compares Teck Resources and Martin Marietta Materials’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Martin Marietta Materials||17.36%||9.47%||5.13%|
Institutional & Insider Ownership
55.2% of Teck Resources shares are held by institutional investors. Comparatively, 99.8% of Martin Marietta Materials shares are held by institutional investors. 0.8% of Martin Marietta Materials shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Teck Resources pays an annual dividend of $0.15 per share and has a dividend yield of 0.6%. Martin Marietta Materials pays an annual dividend of $1.76 per share and has a dividend yield of 0.8%. Teck Resources pays out 4.4% of its earnings in the form of a dividend. Martin Marietta Materials pays out 24.5% 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.
Valuation and Earnings
This table compares Teck Resources and Martin Marietta Materials’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Teck Resources||$9.29 billion||1.58||$1.94 billion||$3.43||7.57|
|Martin Marietta Materials||$3.97 billion||3.57||$713.34 million||$7.18||31.29|
Teck Resources has higher revenue and earnings than Martin Marietta Materials. Teck 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.
This is a summary of current ratings and recommmendations for Teck Resources and Martin Marietta Materials, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Martin Marietta Materials||0||3||5||0||2.63|
Teck Resources presently has a consensus price target of $30.81, indicating a potential upside of 18.74%. Martin Marietta Materials has a consensus price target of $235.29, indicating a potential upside of 4.74%. Given Teck Resources’ higher possible upside, equities research analysts clearly believe Teck Resources is more favorable than Martin Marietta Materials.
Teck Resources beats Martin Marietta Materials on 10 of the 17 factors compared between the two stocks.
Teck Resources Company Profile
Teck Resources Limited researches, explores for, develops, and produces natural resources in the Americas, the Asia Pacific, and Europe. It operates through five segments: Steelmaking Coal, Copper, Zinc, Energy, and Corporate. The company's principal products comprise steelmaking coal; copper concentrates and refined copper cathodes; refined zinc and zinc concentrates; energy products, such as bitumen; and lead concentrates. It also produces molybdenum, gold, silver, germanium, indium, mercury, and cadmium, as well as chemicals, industrial products, and fertilizers. In addition, the company holds interest in oil sands projects and other interests in the Athabasca region of Alberta; and owns interest in exploration and development projects in Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. Teck Resources Limited was founded in 1906 and is based in Vancouver, Canada.
Martin Marietta Materials Company Profile
Martin Marietta Materials, Inc., a natural-resource-based building materials company, supplies aggregates and heavy building materials to the construction industry in the United States and internationally. The company provides crushed stone, sand, and gravel products; ready mixed concrete, and asphalt and paving products; 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. It also manufactures and markets magnesia-based chemical products for the industrial, agricultural, and environmental applications; and dolomitic lime primarily for customers in the steel and mining industries, as well as provides road paving construction services. The company's chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. Martin Marietta Materials, Inc. was founded in 1993 and is headquartered in Raleigh, North Carolina.
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