Head to Head Analysis: U.S. Silica (SLCA) and Its Peers

U.S. Silica (NYSE: SLCA) 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 U.S. Silica to related companies based on the strength of its analyst recommendations, institutional ownership, earnings, profitability, dividends, valuation and risk.

Profitability

This table compares U.S. Silica and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
U.S. Silica 11.70% 9.32% 5.60%
U.S. Silica Competitors 8.93% 9.40% 4.85%

Insider & Institutional Ownership

99.3% of U.S. Silica 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. 1.4% of U.S. Silica shares are owned by company insiders. Comparatively, 15.6% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for U.S. Silica and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Silica 1 3 16 0 2.75
U.S. Silica Competitors 193 709 870 28 2.41

U.S. Silica currently has a consensus price target of $41.90, indicating a potential upside of 49.70%. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies have a potential upside of 18.00%. Given U.S. Silica’s stronger consensus rating and higher possible upside, research analysts plainly believe U.S. Silica is more favorable than its competitors.

Volatility & Risk

U.S. Silica has a beta of 2.3, indicating that its stock price is 130% more volatile than the S&P 500. Comparatively, U.S. Silica’s competitors have a beta of 0.67, indicating that their average stock price is 33% less volatile than the S&P 500.

Dividends

U.S. Silica pays an annual dividend of $0.25 per share and has a dividend yield of 0.9%. U.S. Silica pays out 16.7% 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.

Valuation & Earnings

This table compares U.S. Silica and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
U.S. Silica $1.24 billion $145.20 million 18.66
U.S. Silica Competitors $1.87 billion $261.07 million 15.18

U.S. Silica’s competitors have higher revenue and earnings than U.S. Silica. U.S. Silica 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

U.S. Silica beats its competitors on 9 of the 15 factors compared.

U.S. Silica Company Profile

U.S. Silica Holdings, Inc. is a domestic producer of commercial silica, a specialized mineral that is an input into a range of end markets. The Company operates in two segments: Oil & Gas Proppants, and Industrial & Specialty Products. In the Oil & Gas Proppants segment, it serves the oil and gas recovery market providing fracturing sand, or frac sand, which is pumped down oil and natural gas wells to prop open rock fissures and manage the flow rate of natural gas and oil from the wells. As of December 31, 2016, the Industrial & Specialty Products segment consisted of over 215 products and materials, which are used in a range of industries, including container glass, fiberglass, specialty glass, flat glass, building products, fillers and extenders, foundry products, chemicals, recreation products and filtration products. It produces and sells a range of commercial silica products, including whole grain and ground products, as well as other industrial mineral products.

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