Reviewing Minerals Technologies (NYSE:MTX) and Givaudan (OTCMKTS:GVDNY)

Minerals Technologies (NYSE:MTX) and Givaudan (OTCMKTS:GVDNY) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Minerals Technologies	7.60%	10.40%	5.19%
Givaudan	N/A	N/A	N/A

Volatility and Risk

Minerals Technologies has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Givaudan has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Dividends

Minerals Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. Givaudan pays an annual dividend of $1.12 per share and has a dividend yield of 1.5%. Minerals Technologies pays out 9.3% of its earnings in the form of a dividend. Minerals Technologies has increased its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Minerals Technologies and Givaudan”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Minerals Technologies	$2.07 billion	1.16	-$18.40 million	$5.17	15.03
Givaudan	$9.02 billion	3.80	$1.29 billion	N/A	N/A

Givaudan has higher revenue and earnings than Minerals Technologies.

Institutional & Insider Ownership

97.3% of Minerals Technologies shares are held by institutional investors. Comparatively, 0.0% of Givaudan shares are held by institutional investors. 3.7% of Minerals Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings for Minerals Technologies and Givaudan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Minerals Technologies	0	2	1	0	2.33
Givaudan	1	5	2	0	2.13

Minerals Technologies presently has a consensus price target of $90.00, indicating a potential upside of 15.84%. Given Minerals Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Minerals Technologies is more favorable than Givaudan.

Summary

Minerals Technologies beats Givaudan on 9 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 Givaudan

Givaudan SA manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, alcoholic beverages, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.