Smart Sand (NASDAQ: SND) and Summit Materials (NYSE:SUM) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Volatility and Risk
Smart Sand has a beta of 4.63, suggesting that its share price is 363% more volatile than the S&P 500. Comparatively, Summit Materials has a beta of 1.97, suggesting that its share price is 97% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Smart Sand and Summit Materials, as provided by MarketBeat.
||Strong Buy Ratings
Smart Sand currently has a consensus target price of $13.65, indicating a potential upside of 28.77%. Summit Materials has a consensus target price of $31.50, indicating a potential downside of 1.10%. Given Smart Sand’s higher probable upside, research analysts clearly believe Smart Sand is more favorable than Summit Materials.
Valuation and Earnings
This table compares Smart Sand and Summit Materials’ gross revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Summit Materials has higher revenue and earnings than Smart Sand. Smart Sand is trading at a lower price-to-earnings ratio than Summit Materials, indicating that it is currently the more affordable of the two stocks.
This table compares Smart Sand and Summit Materials’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Institutional and Insider Ownership
49.5% of Smart Sand shares are owned by institutional investors. 46.4% of Smart Sand shares are owned by insiders. Comparatively, 2.0% of Summit Materials shares are owned 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.
Smart Sand beats Summit Materials on 8 of the 14 factors compared between the two stocks.
Smart Sand Company Profile
Smart Sand, Inc. is a producer of Northern White raw frac sand, which is a proppant used to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company sells its products primarily to oil and natural gas exploration and production companies and oilfield service companies under a combination of long-term take-or-pay contracts and spot sales in the open market. It owns and operates a raw frac sand mine and related processing facility near Oakdale, Wisconsin. In addition to the Oakdale facility, it owns a second property in Jackson County, Wisconsin, known as Hixton site. Its sand reserves include a balanced concentration of coarse (20/40, 30/50 and 40/70 gradation) sands and fine (60/140 gradation) sand. Its reserves contain deposits of approximately 20% of 20/40 and coarser substrate, over 40% of 40/70 mesh substrate and approximately 40% of 100-mesh substrate. Its 30/50 gradation is a derivative of the 20/40 and 40/70 blends.
Summit Materials Company Profile
Summit Materials, Inc. is a construction materials company. The Company operates through three segments: West, East and Cement. As of December 31, 2016, the Company had operations in 21 states in the United States and in British Columbia, Canada. The Company’s materials include aggregates, which it supplies across the United States, and in British Columbia, Canada, and cement, which it supplies along the Mississippi River from Minneapolis to New Orleans. Within its markets, it offers construction materials and related downstream products through its vertical integration. In addition to supplying of aggregates to its customers, the Company also uses its materials internally to produce ready-mix concrete and asphalt paving mix. Its construction materials operations consists of aggregates production, including crushed stone and construction sand and gravel, cement and ready-mixed concrete production, and asphalt paving mix production.
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