Analyzing Martin Marietta Materials (MLM) and The Competition

Martin Marietta Materials (NYSE: MLM) is one of 21 public companies in the “Mining & quarrying of nonmetallic minerals, except fuels” industry, but how does it contrast to its peers? We will compare Martin Marietta Materials to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, valuation, dividends, earnings and risk.

Profitability

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This table compares Martin Marietta Materials and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Martin Marietta Materials 17.99% 10.55% 5.80%
Martin Marietta Materials Competitors 8.93% 9.40% 4.85%



Valuation and Earnings

This table compares Martin Marietta Materials and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Martin Marietta Materials $3.97 billion $713.34 million 27.40
Martin Marietta Materials Competitors $1.87 billion $261.07 million 15.18

Martin Marietta Materials has higher revenue and earnings than its peers. Martin Marietta Materials is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

100.0% of Martin Marietta Materials shares are owned by institutional investors. Comparatively, 59.0% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are owned by institutional investors. 8.5% of Martin Marietta Materials shares are owned by insiders. Comparatively, 15.6% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Martin Marietta Materials and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Martin Marietta Materials 0 4 5 0 2.56
Martin Marietta Materials Competitors 193 709 870 28 2.41

Martin Marietta Materials presently has a consensus target price of $241.13, indicating a potential upside of 22.57%. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies have a potential upside of 17.98%. Given Martin Marietta Materials’ stronger consensus rating and higher possible upside, equities analysts plainly believe Martin Marietta Materials is more favorable than its peers.

Dividends

Martin Marietta Materials pays an annual dividend of $1.76 per share and has a dividend yield of 0.9%. Martin Marietta Materials pays out 24.5% of its earnings in the form of a dividend. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies pay a dividend yield of 2.0% and pay out 46.8% of their earnings in the form of a dividend.

Volatility & Risk

Martin Marietta Materials has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Martin Marietta Materials’ peers have a beta of 0.67, meaning that their average share price is 33% less volatile than the S&P 500.

Summary

Martin Marietta Materials beats its peers on 12 of the 15 factors compared.

About Martin Marietta Materials

Martin Marietta Materials, Inc., a natural-resource-based building materials company, supplies aggregates and heavy building materials to the construction industry in the United States and internationally. The company provides crushed stone, sand, and gravel products; ready mixed concrete, and asphalt and paving products; and Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. It also manufactures and markets magnesia-based chemical products for the industrial, agricultural, and environmental applications; and dolomitic lime primarily for customers in the steel and mining industries, as well as provides road paving construction services. The company's chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. Martin Marietta Materials, Inc. was founded in 1993 and is headquartered in Raleigh, North Carolina.

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