U.S. Silica (SLCA) & Teck Resources (TECK) Head to Head Comparison

Teck Resources (NYSE: TECK) and U.S. Silica (NYSE:SLCA) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Profitability

This table compares Teck Resources and U.S. Silica’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Teck Resources 22.03% 13.66% 7.34%
U.S. Silica 12.74% 11.86% 7.06%

Volatility & Risk

Teck Resources has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, U.S. Silica has a beta of 2.3, suggesting that its stock price is 130% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Teck Resources and U.S. Silica, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Teck Resources 1 6 10 1 2.61
U.S. Silica 1 3 16 0 2.75

Teck Resources currently has a consensus price target of $31.06, suggesting a potential upside of 9.50%. U.S. Silica has a consensus price target of $41.85, suggesting a potential upside of 26.66%. Given U.S. Silica’s stronger consensus rating and higher probable upside, analysts plainly believe U.S. Silica is more favorable than Teck Resources.

Dividends

Teck Resources pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. U.S. Silica pays an annual dividend of $0.25 per share and has a dividend yield of 0.8%. Teck Resources pays out 4.7% of its earnings in the form of a dividend. U.S. Silica pays out 16.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings & Valuation

This table compares Teck Resources and U.S. Silica’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Teck Resources $9.29 billion 1.73 $1.94 billion $3.43 8.27
U.S. Silica $1.24 billion 2.08 $145.20 million $1.50 22.03

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

Institutional and Insider Ownership

53.7% of Teck Resources shares are owned by institutional investors. Comparatively, 98.4% of U.S. Silica shares are owned by institutional investors. 1.4% of U.S. Silica shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

U.S. Silica beats Teck Resources on 9 of the 17 factors compared between the two stocks.

About Teck Resources

Teck Resources Limited researches, explores for, develops, and produces natural resources in the Americas, the Asia Pacific, and Europe. It operates through five segments: Steelmaking Coal, Copper, Zinc, Energy, and Corporate. The company's principal products comprise steelmaking coal; copper concentrates and refined copper cathodes; refined zinc and zinc concentrates; energy products, such as bitumen; and lead concentrates. It also produces molybdenum, gold, silver, germanium, indium, mercury, and cadmium, as well as chemicals, industrial products, and fertilizers. In addition, the company holds interest in oil sands projects and other interests in the Athabasca region of Alberta; and owns interest in exploration and development projects in Australia, Chile, Ireland, Mexico, Peru, Turkey, and the United States. The company was formerly known as Teck Cominco Limited and changed its name to Teck Resources Limited in April 2009. Teck Resources Limited was founded in 1906 and is based in Vancouver, Canada.

About U.S. Silica

U.S. Silica Holdings, Inc. produces and sells commercial silica in the United States. The company operates through two segments, Oil & Gas Proppants and Industrial & Specialty Products. It offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery; and resin coated proppants, as well as sells its whole grain silica products in various size distributions, grain shapes, and chemical purity levels for manufacturing glass products. The company also provides ground commercial silica products for use in plastics, rubber, polishes, cleansers, paints, glazes, textile fiberglass, and precision castings; and fine ground silica for use in premium paints, specialty coatings, sealants, silicone rubber, and epoxies. In addition, it offers other industrial mineral products, such as aplite, a mineral used to produce container glass and insulation fiberglass; adsorbent made from a mixture of silica and magnesium for preparative and analytical chromatography applications; and White Armor, a product line of cool roof granules used in industrial roofing applications. U.S. Silica Holdings, Inc. serves oilfield services companies, and exploration and production companies that are engaged in hydraulic fracturing; and industrial and specialty products end markets. The company was formerly known as GGC USS Holdings, Inc. U.S. Silica Holdings, Inc. was incorporated in 2008 and is headquartered in Frederick, Maryland.

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