Mercer International (MERC) versus Benz Mining Corp (BZ) Critical Review

Mercer International (NASDAQ: MERC) and Benz Mining Corp (NYSE:BZ) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Valuation & Earnings

This table compares Mercer International and Benz Mining Corp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Mercer International $931.62 million 1.00 $34.94 million $0.72 19.86
Benz Mining Corp N/A N/A N/A C$0.14 N/A

Mercer International has higher revenue and earnings than Benz Mining Corp. Benz Mining Corp is trading at a lower price-to-earnings ratio than Mercer International, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

79.9% of Mercer International shares are owned by institutional investors. 4.9% of Mercer International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Mercer International and Benz Mining Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mercer International 4.49% 13.50% 4.57%
Benz Mining Corp N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Mercer International and Benz Mining Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mercer International 0 4 2 0 2.33
Benz Mining Corp 0 0 0 0 N/A

Mercer International presently has a consensus price target of $16.19, suggesting a potential upside of 13.20%.

Dividends

Mercer International pays an annual dividend of $0.46 per share and has a dividend yield of 3.2%. Benz Mining Corp does not pay a dividend. Mercer International pays out 63.9% of its earnings in the form of a dividend.

Summary

Mercer International beats Benz Mining Corp on 9 of the 10 factors compared between the two stocks.

Mercer International Company Profile

Mercer International Inc. is a producer of northern bleached softwood kraft (NBSK) pulp, which is pulp that is sold on the open market. The Company also produces and sells tall oil, a by-product of its production process, which is used as both a chemical additive and as a green energy source. It produces and sells NBSK pulp, which is a bleached kraft pulp manufactured using northern softwood. As of December 31, 2016, the Company operated two mills in Eastern Germany and one mill in Western Canada. As of December 31, 2016, its three NBSK pulp mills had consolidated annual production capacity of approximately 1.5 million air-dried metric tons (ADMTs) of NBSK pulp and were capable of generating 305 megawatts (MW) of electricity. Additionally, its German mills generate tall oil from black liquor, which is sold to third parties for use in various applications, including bio-fuels. The Company’s mills generate and sell energy to regional utilities.

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