Martin Marietta Materials (MLM) vs. Its Competitors Financial Comparison

Martin Marietta Materials (NYSE: MLM) is one of 21 publicly-traded companies in the “Mining & quarrying of nonmetallic minerals, except fuels” industry, but how does it contrast to its peers? We will compare Martin Marietta Materials to similar companies based on the strength of its earnings, valuation, institutional ownership, risk, analyst recommendations, profitability and dividends.

Institutional and Insider Ownership

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100.0% of Martin Marietta Materials shares are owned by institutional investors. Comparatively, 59.0% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are owned by institutional investors. 8.5% of Martin Marietta Materials shares are owned by insiders. Comparatively, 15.6% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Martin Marietta Materials and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Martin Marietta Materials 17.99% 10.55% 5.80%
Martin Marietta Materials Competitors 8.93% 9.40% 4.85%

Risk & Volatility

Martin Marietta Materials has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Martin Marietta Materials’ peers have a beta of 0.67, suggesting that their average share price is 33% less volatile than the S&P 500.

Earnings & Valuation

This table compares Martin Marietta Materials and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Martin Marietta Materials $3.97 billion $713.34 million 28.16
Martin Marietta Materials Competitors $1.87 billion $261.07 million 14.61

Martin Marietta Materials has higher revenue and earnings than its peers. Martin Marietta Materials is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Martin Marietta Materials pays an annual dividend of $1.76 per share and has a dividend yield of 0.9%. Martin Marietta Materials pays out 24.5% of its earnings in the form of a dividend. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies pay a dividend yield of 2.0% and pay out 46.8% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Martin Marietta Materials and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Martin Marietta Materials 0 4 5 0 2.56
Martin Marietta Materials Competitors 195 698 858 28 2.40

Martin Marietta Materials presently has a consensus price target of $243.25, suggesting a potential upside of 20.29%. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies have a potential upside of 24.22%. Given Martin Marietta Materials’ peers higher possible upside, analysts plainly believe Martin Marietta Materials has less favorable growth aspects than its peers.

Summary

Martin Marietta Materials beats its peers on 11 of the 15 factors compared.

About Martin Marietta Materials

Martin Marietta Materials, Inc. is a supplier of aggregates products (crushed stone, sand, and gravel) used for the construction of infrastructure, nonresidential, and residential projects. Aggregates products are also used for railroad ballast and in agricultural, utility and environmental applications. The Company’s Aggregates business operates through three segments: the Mid-America Group, Southeast Group and West Group. The Company’s business is categorized into Aggregates Business, Cement Business and Magnesia Specialties Business. Its Cement business is reported through the Cement segment. Its Magnesia Specialties business manufactures and markets magnesia-based chemical products used in industrial, agricultural, and environmental applications, and dolomitic lime sold to customers in the steel industry. Its Cement business produces Portland and specialty cements. It manufactures and markets, through its Magnesia Specialties business, magnesia-based chemical products.

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