5E Advanced Materials (NASDAQ:FEAM) versus Minerals Technologies (NYSE:MTX) Head-To-Head Contrast

Minerals Technologies (NYSE:MTX) and 5E Advanced Materials (NASDAQ:FEAM) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Profitability

This table compares Minerals Technologies and 5E Advanced Materials’ 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%
5E Advanced Materials	N/A	-313.00%	-68.37%

Earnings and Valuation

This table compares Minerals Technologies and 5E Advanced Materials”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Minerals Technologies	$2.12 billion	0.93	$167.10 million	$0.06	1,051.65
5E Advanced Materials	N/A	N/A	-$62.01 million	($15.95)	-0.26

Minerals Technologies has higher revenue and earnings than 5E Advanced Materials. 5E Advanced Materials is trading at a lower price-to-earnings ratio than Minerals Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Minerals Technologies and 5E Advanced Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Minerals Technologies	0	0	1	0	3.00
5E Advanced Materials	0	0	2	0	3.00

Minerals Technologies currently has a consensus target price of $84.00, suggesting a potential upside of 33.12%. 5E Advanced Materials has a consensus target price of $9.75, suggesting a potential upside of 138.97%. Given 5E Advanced Materials’ higher probable upside, analysts clearly believe 5E Advanced Materials is more favorable than Minerals Technologies.

Insider & Institutional Ownership

97.3% of Minerals Technologies shares are owned by institutional investors. 3.3% of Minerals Technologies shares are owned by insiders. Comparatively, 0.5% of 5E Advanced Materials shares 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.

Risk and Volatility

Minerals Technologies has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, 5E Advanced Materials has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500.

Summary

Minerals Technologies beats 5E Advanced Materials on 9 of the 12 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 5E Advanced Materials

5E Advanced Materials, Inc. engages in the exploration and development of mineral properties in Australia and the United States. The company primarily explores for borates and lithium deposits. It holds 100% interest in the Fort Cady project located in the Mojave Desert region in eastern San Bernardino County, California. The company was formerly known as American Pacific Borates Limited. The company was incorporated in 2016 and is based in Hesperia, California.