Financial Contrast: Summit Materials (SUM) & Its Competitors

Summit Materials (NYSE: SUM) is one of 21 public companies in the “Mining & quarrying of nonmetallic minerals, except fuels” industry, but how does it compare to its competitors? We will compare Summit Materials to related businesses based on the strength of its analyst recommendations, earnings, valuation, profitability, institutional ownership, risk and dividends.

Profitability

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This table compares Summit Materials and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Summit Materials 6.19% 11.51% 3.79%
Summit Materials Competitors 8.93% 9.40% 4.85%

Insider & Institutional Ownership

59.0% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are held by institutional investors. 1.5% of Summit Materials shares are held by company insiders. Comparatively, 15.6% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Summit Materials and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Summit Materials 0 2 9 0 2.82
Summit Materials Competitors 193 709 870 28 2.41

Summit Materials currently has a consensus target price of $33.55, indicating a potential upside of 16.21%. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies have a potential upside of 19.61%. Given Summit Materials’ competitors higher probable upside, analysts plainly believe Summit Materials has less favorable growth aspects than its competitors.

Volatility and Risk

Summit Materials has a beta of 1.71, suggesting that its stock price is 71% more volatile than the S&P 500. Comparatively, Summit Materials’ competitors have a beta of 0.67, suggesting that their average stock price is 33% less volatile than the S&P 500.

Earnings & Valuation

This table compares Summit Materials and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Summit Materials $1.93 billion $125.80 million 31.04
Summit Materials Competitors $1.87 billion $261.07 million 15.18

Summit Materials has higher revenue, but lower earnings than its competitors. Summit Materials is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Summit Materials competitors beat Summit Materials on 7 of the 13 factors compared.

Summit Materials Company Profile

Summit Materials, Inc., together with its subsidiaries, produces and sells construction materials and related downstream products. Its products include aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products. The company also provides paving and related services to private and public infrastructure sectors. In addition, it operates municipal waste, construction, and demolition debris landfills; and liquid asphalt terminal. The company operates in the United States, British Columbia, and Canada. Summit Materials, Inc. was founded in 2009 and is headquartered in Denver, Colorado.

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