Teck Resources (NYSE: TECK) and Hi-Crush Partners (NYSE:HCLP) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
This is a summary of recent ratings and price targets for Teck Resources and Hi-Crush Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares Teck Resources and Hi-Crush Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
55.2% of Teck Resources shares are held by institutional investors. Comparatively, 27.4% of Hi-Crush Partners shares are held by institutional investors. 34.8% of Hi-Crush Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Teck Resources and Hi-Crush Partners’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Teck Resources||$9.29 billion||1.58||$1.94 billion||$3.43||7.56|
|Hi-Crush Partners||$602.62 million||1.75||$82.53 million||$1.01||11.78|
Teck Resources has higher revenue and earnings than Hi-Crush Partners. Teck Resources is trading at a lower price-to-earnings ratio than Hi-Crush Partners, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Teck Resources has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Hi-Crush Partners has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.
Teck Resources pays an annual dividend of $0.15 per share and has a dividend yield of 0.6%. Hi-Crush Partners pays an annual dividend of $0.90 per share and has a dividend yield of 7.6%. Teck Resources pays out 4.4% of its earnings in the form of a dividend. Hi-Crush Partners pays out 89.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hi-Crush Partners has raised its dividend for 5 consecutive years. Hi-Crush Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Hi-Crush Partners beats Teck Resources on 10 of the 18 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 Hi-Crush Partners
Hi-Crush Partners LP, together with its subsidiaries, provides proppant and logistics solutions to the energy industry in North America. The company produces monocrystalline sand, a specialized mineral used as a proppant during the well completion process to facilitate the recovery of hydrocarbons from oil and natural gas wells. It owns, operates, and develops sand reserves, and excavation and processing facilities, which include 1,447-acre facility with integrated rail infrastructure, located near Independence, Wisconsin and Whitehall, Wisconsin; 971-acre facility with integrated rail infrastructure, located in Wyeville, Wisconsin; 1,187-acre Augusta facility with integrated rail infrastructure, situated in Eau Claire County, Wisconsin; and 1,285-acre facility with integrated rail infrastructure, located near Blair, Wisconsin. The company offers raw frac sand used in hydraulic fracturing process for oil and natural gas wells. It primarily serves pressure pumping service providers, and oil and gas exploration and production companies. Hi-Crush GP LLC operates as the general partner of the company. Hi-Crush Partners LP was founded in 2012 and is based in Houston, Texas.
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