Smart Sand (NASDAQ: SND) and Vulcan Materials (NYSE:VMC) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.
This table compares Smart Sand and Vulcan Materials’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Vulcan Materials pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. Smart Sand does not pay a dividend. Vulcan Materials pays out 35.0% of its earnings in the form of a dividend. Smart Sand has increased its dividend for 3 consecutive years.
Valuation & Earnings
This table compares Smart Sand and Vulcan Materials’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Smart Sand||$59.23 million||5.48||$10.37 million||$0.65||12.35|
|Vulcan Materials||$3.59 billion||4.50||$419.49 million||$2.86||42.77|
Vulcan Materials has higher revenue and earnings than Smart Sand. Smart Sand is trading at a lower price-to-earnings ratio than Vulcan Materials, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
50.9% of Smart Sand shares are owned by institutional investors. Comparatively, 87.3% of Vulcan Materials shares are owned by institutional investors. 0.9% of Vulcan Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for Smart Sand and Vulcan Materials, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Smart Sand currently has a consensus target price of $13.28, suggesting a potential upside of 65.35%. Vulcan Materials has a consensus target price of $140.00, suggesting a potential upside of 14.45%. Given Smart Sand’s higher possible upside, equities analysts clearly believe Smart Sand is more favorable than Vulcan Materials.
Smart Sand Company Profile
Smart Sand, Inc. is a producer of Northern White raw frac sand, which is a proppant used to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company sells its products primarily to oil and natural gas exploration and production companies and oilfield service companies under a combination of long-term take-or-pay contracts and spot sales in the open market. It owns and operates a raw frac sand mine and related processing facility near Oakdale, Wisconsin. In addition to the Oakdale facility, it owns a second property in Jackson County, Wisconsin, known as Hixton site. Its sand reserves include a balanced concentration of coarse (20/40, 30/50 and 40/70 gradation) sands and fine (60/140 gradation) sand. Its reserves contain deposits of approximately 20% of 20/40 and coarser substrate, over 40% of 40/70 mesh substrate and approximately 40% of 100-mesh substrate. Its 30/50 gradation is a derivative of the 20/40 and 40/70 blends.
Vulcan Materials Company Profile
Vulcan Materials Company is a supplier of construction aggregates (primarily crushed stone, sand and gravel) and a producer of asphalt mix and ready-mixed concrete. The Company operates through four segments: Aggregates, Asphalt Mix, Concrete and Calcium. The Aggregates segment produces and sells aggregates (crushed stone, sand and gravel, sand, and other aggregates) and related products and services (transportation and other). The Company produces and sells asphalt mix in Arizona, California, New Mexico and Texas. The Company produces and sells ready-mixed concrete in Georgia, Maryland, New Mexico, Texas, Virginia, Washington District of Columbia and the Bahamas. The Calcium segment consists of a Florida facility that mines, produces and sells calcium products. As of December 31, 2016, it had 337 active aggregates facilities. The Company sells aggregates that are used as ballast for construction and maintenance of railroad tracks.
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