Reviewing Summit Materials (SUM) and Ciner Resources (CINR)

Summit Materials (NYSE: SUM) and Ciner Resources (NYSE:CINR) are both construction companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares Summit Materials and Ciner Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Summit Materials 6.03% 10.20% 3.31%
Ciner Resources 8.29% 16.54% 9.22%

Dividends

Ciner Resources pays an annual dividend of $2.27 per share and has a dividend yield of 9.2%. Summit Materials 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 & Valuation

This table compares Summit Materials and Ciner Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Summit Materials $1.93 billion 1.68 $125.80 million $0.93 31.24
Ciner Resources $497.30 million 0.97 $41.60 million $2.07 11.86

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

Analyst Ratings

This is a summary of current ratings and target prices for Summit Materials and Ciner Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Summit Materials 0 2 9 0 2.82
Ciner Resources 0 2 1 0 2.33

Summit Materials presently has a consensus price target of $33.55, indicating a potential upside of 15.49%. Ciner Resources has a consensus price target of $28.67, indicating a potential upside of 16.77%. Given Ciner Resources’ higher probable upside, analysts clearly believe Ciner Resources is more favorable than Summit Materials.

Risk & Volatility

Summit Materials has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Ciner Resources has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.

Institutional and Insider Ownership

9.9% of Ciner Resources shares are owned by institutional investors. 1.5% of Summit Materials shares are owned by company 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.

Summary

Summit Materials beats Ciner Resources on 9 of the 16 factors compared between the two stocks.

About Summit Materials

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.

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, 2017, it had proven and probable reserves of approximately 240.1 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 is a subsidiary of Ciner Wyoming Holding Co.

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