Ciner Resources (CINR) vs. Emerge Energy Services (EMES) Head to Head Review

Ciner Resources (NYSE: CINR) and Emerge Energy Services (NYSE:EMES) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.

Risk & Volatility

Ciner Resources has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Emerge Energy Services has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.

Dividends

Ciner Resources pays an annual dividend of $2.27 per share and has a dividend yield of 8.3%. Emerge Energy Services does not pay a dividend. Ciner Resources pays out 109.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Ciner Resources and Emerge Energy Services’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ciner Resources $497.30 million 1.08 $41.60 million $2.07 13.15
Emerge Energy Services $364.30 million 0.61 -$6.83 million ($0.12) -60.17

Ciner Resources has higher revenue and earnings than Emerge Energy Services. Emerge Energy Services is trading at a lower price-to-earnings ratio than Ciner Resources, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

10.0% of Ciner Resources shares are held by institutional investors. Comparatively, 18.3% of Emerge Energy Services shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Ciner Resources and Emerge Energy Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ciner Resources 0 2 1 0 2.33
Emerge Energy Services 0 5 3 0 2.38

Ciner Resources presently has a consensus target price of $26.50, indicating a potential downside of 2.65%. Emerge Energy Services has a consensus target price of $13.14, indicating a potential upside of 82.03%. Given Emerge Energy Services’ stronger consensus rating and higher probable upside, analysts plainly believe Emerge Energy Services is more favorable than Ciner Resources.

Profitability

This table compares Ciner Resources and Emerge Energy Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ciner Resources 8.37% 16.66% 9.52%
Emerge Energy Services -1.88% -8.54% -1.29%

Summary

Ciner Resources beats Emerge Energy Services on 9 of the 15 factors compared between the two stocks.

About Ciner Resources

Ciner Resources LP engages in the trona ore mining and soda ash production businesses in the United States and internationally. It processes trona ore into soda ash, which is a raw material in flat glass, container glass, detergents, chemicals, paper, and other consumer and industrial products. The company has approximately 23,500 acres of leased and licensed subsurface mining areas in the Green River Basin of Wyoming. As of December 31, 2016, it had proven and probable reserves of approximately 263.5 million short tons of trona. Ciner Resource Partners LLC serves as the general partner of the company. The company was formerly known as OCI Resources LP and changed its name to Ciner Resources LP in November 2015. Ciner Resources LP is based in Atlanta, Georgia. Ciner Resources LP operates as a subsidiary of Ciner Wyoming Holding Co.

About Emerge Energy Services

Emerge Energy Services LP, through its subsidiary, Superior Silica Sands LLC, operates an energy services company in the United States. It engages in mining, producing, and distributing silica sand, which is a primary input for the hydraulic fracturing of oil and natural gas wells. The company serves oilfield services companies, and exploration and production companies that are engaged in hydraulic fracturing. Emerge Energy Services GP, LLC operates as the general partner of the company. Emerge Energy Services LP was founded in 2012 and is headquartered in Fort Worth, Texas.

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