Minerals Technologies (NYSE:MTX) and Huabao International (OTCMKTS:HUIHY) Critical Analysis

Minerals Technologies (NYSE:MTX) and Huabao International (OTCMKTS:HUIHY) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Dividends

Minerals Technologies pays an annual dividend of $0.44 per share and has a dividend yield of 0.7%. Huabao International pays an annual dividend of $0.06 per share and has a dividend yield of 0.4%. Minerals Technologies pays out 733.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Minerals Technologies has increased its dividend for 2 consecutive years. Minerals Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

97.3% of Minerals Technologies shares are owned by institutional investors. 3.5% of Minerals Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Minerals Technologies and Huabao International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Minerals Technologies	$2.12 billion	0.90	$167.10 million	$0.06	1,015.13
Huabao International	$469.25 million	1.92	-$53.62 million	N/A	N/A

Minerals Technologies has higher revenue and earnings than Huabao International.

Analyst Ratings

This is a summary of current ratings and target prices for Minerals Technologies and Huabao International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Minerals Technologies	1	0	1	0	2.00
Huabao International	0	0	0	0	0.00

Minerals Technologies presently has a consensus price target of $84.00, indicating a potential upside of 37.91%. Given Minerals Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Minerals Technologies is more favorable than Huabao International.

Profitability

This table compares Minerals Technologies and Huabao International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Minerals Technologies	0.10%	10.64%	5.34%
Huabao International	N/A	N/A	N/A

Volatility & Risk

Minerals Technologies has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Huabao International has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Summary

Minerals Technologies beats Huabao International on 13 of the 15 factors compared between the two stocks.

About Minerals Technologies

Minerals Technologies Inc. develops, produces, and markets various mineral, mineral-based, and related systems and services. The company operates through two segments, Consumer & Specialties, and Engineered Solutions segments. The Consumer & Specialties segment offers household and personal care products, such as pet litter, personal care, fabric care, edible oil and other fluid purification, animal health, and agricultural products; and specialty additives products, including precipitated calcium carbonate and ground calcium carbonate products that are used in the paper, paperboard, and fiber based packaging industries, as well as automotive, construction, and table and food applications. This segment produces limestone and dolomitic limestone used in construction, automotive, and consumer markets for packaging applications. The Engineered Solutions segment provides high-temperature technology products consisting of custom-blended mineral and non-mineral products for casting auto parts, farm and construction equipment, oil and gas production equipment, power generation turbine castings, and rail car components; and environmental and infrastructure products comprising geosynthetic clay lining systems, vapor intrusion mitigation products, sub surface waterproofing systems, green roofs, wastewater remediation, drinking water purification technologies, and drilling products. In addition, this segment provides chromite products; gunnable monolithic refractory products and application systems; monolithic refractory materials and pre-cast refractory shapes; refractory shapes and linings; carbon composite and pyrolitic graphite; and filtration and well testing services. It markets its products primarily through its direct sales force, as well as regional distributors. The company serves in the United States, Canada, Latin America, Europe, Africa, and Asia. Minerals Technologies Inc. was incorporated in 1968 and is headquartered in New York, New York.

About Huabao International

Huabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavours and fragrances, food ingredients, tobacco and aroma raw materials, and condiment products primarily in the People's Republic of China. It offers paper-making reconstituted tobacco leaves and new materials products for the tobacco industry. The company is also involved in the production and sale of natural extracts; tobacco flavours and fragrances; filter materials; cigarette filters; synthetic perfumes; and food flavours and fragrances. Huabao International Holdings Limited was founded in 1996 and is headquartered in Wan Chai, Hong Kong.