SunCoke Energy Partners (SXCP) versus Gibraltar Industries (ROCK) Critical Comparison

SunCoke Energy Partners (NYSE: SXCP) and Gibraltar Industries (NASDAQ:ROCK) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Insider & Institutional Ownership

13.3% of SunCoke Energy Partners shares are owned by institutional investors. 0.5% of Gibraltar Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for SunCoke Energy Partners and Gibraltar Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunCoke Energy Partners 0 0 1 0 3.00
Gibraltar Industries 0 0 2 0 3.00

Gibraltar Industries has a consensus target price of $44.50, indicating a potential upside of 39.94%. Given Gibraltar Industries’ higher possible upside, analysts clearly believe Gibraltar Industries is more favorable than SunCoke Energy Partners.

Risk & Volatility

SunCoke Energy Partners has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Gibraltar Industries has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500.

Profitability

This table compares SunCoke Energy Partners and Gibraltar Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunCoke Energy Partners -2.28% 14.57% 4.86%
Gibraltar Industries 3.08% 10.77% 5.46%

Valuation & Earnings

This table compares SunCoke Energy Partners and Gibraltar Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SunCoke Energy Partners $845.60 million 1.00 -$18.10 million ($0.55) -33.36
Gibraltar Industries $1.01 billion 1.00 $33.67 million $0.93 34.19

Gibraltar Industries has higher revenue and earnings than SunCoke Energy Partners. SunCoke Energy Partners is trading at a lower price-to-earnings ratio than Gibraltar Industries, indicating that it is currently the more affordable of the two stocks.

Dividends

SunCoke Energy Partners pays an annual dividend of $2.38 per share and has a dividend yield of 13.0%. Gibraltar Industries does not pay a dividend. SunCoke Energy Partners pays out -432.7% of its earnings in the form of a dividend. Gibraltar Industries has raised its dividend for 2 consecutive years.

Summary

Gibraltar Industries beats SunCoke Energy Partners on 11 of the 16 factors compared between the two stocks.

SunCoke Energy Partners Company Profile

SunCoke Energy Partners, L.P. is engaged in the production of coke used in the blast furnace production of steel. As of December 31, 2016, the Company owned a 98% interest in Haverhill Coke Company LLC (Haverhill), Middletown Coke Company, LLC (Middletown), and Gateway Energy and Coke Company, LLC (Granite City). The Company’s segments include Domestic Coke, which consists of the Haverhill, Middletown and Granite City cokemaking and heat recovery operations located in Franklin Furnace, Ohio; Middletown, Ohio, and Granite City, Illinois, respectively, and Coal Logistics, which consists of the Company’s Convent Marine Terminal, Kanawha River Terminals, LLC and SunCoke Lake Terminal, LLC (Lake Terminal) coal handling and/or mixing service operations in Convent, Louisiana; Ceredo and Belle, West Virginia, and East Chicago, Indiana, respectively. It also provides coal handling and/or mixing services at its Coal Logistics terminals to steel, coke, electric utility and coal mining customers.

Gibraltar Industries Company Profile

Gibraltar Industries, Inc. is a manufacturer and distributor of building products for industrial, transportation infrastructure, residential housing, renewable energy and resource conservation markets. The Company’s segments include Residential Products; Industrial and Infrastructure Products, and Renewable Energy and Conservation. The Residential Products segment services residential housing construction and residential repair and remodeling activity with products including roof and foundation ventilation products, rain dispersion products and roof ventilation accessories. The Industrial and Infrastructure Products segment focuses on a range of markets, including industrial and commercial construction, automotive, airports and energy and power generation markets with products. The Renewable Energy and Conservation segment focuses on the design, engineering, manufacturing and installation of solar racking systems and commercial, institutional and retail greenhouse structures.

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