Summit Materials (NYSE:SUM) versus Hi-Crush (NYSE:HCR) Critical Analysis

Summit Materials (NYSE:SUM) and Hi-Crush (NYSE:HCR) are both small-cap construction companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Summit Materials and Hi-Crush, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Summit Materials 0 4 6 0 2.60
Hi-Crush 0 0 0 0 N/A

Summit Materials currently has a consensus price target of $19.89, indicating a potential upside of 18.60%. Given Summit Materials’ higher probable upside, equities analysts clearly believe Summit Materials is more favorable than Hi-Crush.

Volatility & Risk

Summit Materials has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, Hi-Crush has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500.

Valuation & Earnings

This table compares Summit Materials and Hi-Crush’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Summit Materials $2.10 billion 0.89 $36.33 million $0.15 111.80
Hi-Crush $842.84 million 0.35 $137.59 million $1.49 1.96

Hi-Crush has lower revenue, but higher earnings than Summit Materials. Hi-Crush is trading at a lower price-to-earnings ratio than Summit Materials, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Summit Materials and Hi-Crush’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Summit Materials 0.97% 1.78% 0.61%
Hi-Crush 9.99% 10.24% 6.09%

Dividends

Hi-Crush pays an annual dividend of $0.98 per share and has a dividend yield of 33.6%. Summit Materials does not pay a dividend. Hi-Crush pays out 65.8% of its earnings in the form of a dividend.

Insider & Institutional Ownership

5.3% of Hi-Crush shares are owned by institutional investors. 1.8% of Summit Materials shares are owned by insiders. Comparatively, 34.8% of Hi-Crush shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Hi-Crush beats Summit Materials on 9 of the 15 factors compared between the two stocks.

Summit Materials Company Profile

Summit Materials, Inc., through its subsidiaries, produces and sells construction materials and related downstream products for the public infrastructure, residential and nonresidential, and other markets. It operates in three segments: West, East, and Cement. The company's products include aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products, as well as plastics components. It also provides paving and related services primarily comprising asphalt paving services to the private and public infrastructure sectors. In addition, the company operates municipal waste, construction, and demolition debris landfills; and liquid asphalt terminal. It has operations in the United States; and British Columbia, Canada. The company was founded in 2009 and is headquartered in Denver, Colorado.

Hi-Crush Company Profile

Hi-Crush Inc., together with its subsidiaries, provides proppant and logistics solutions to the petroleum industry in North America. The company offers raw frac sand used in hydraulic fracturing process for oil and natural gas wells. It owns and operates multiple frac sand mining facilities, which include a 971-acre facility with integrated rail infrastructure located in Wyeville, Wisconsin; a 1,187-acre facility with integrated rail infrastructure located in Eau Claire County, Wisconsin; a 1,285-acre facility with integrated rail infrastructure located in Blair, Wisconsin; and a 1,626-acre facility with integrated rail infrastructure located in Independence, Wisconsin and Whitehall, Wisconsin. The company also owns and operates a 1,226-acre frac sand reserve located near Kermit, Texas; and 12 terminal locations throughout Pennsylvania, Ohio, Texas, Colorado, and New York. 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. The company was formerly known as Hi-Crush Partners LP and changed its name to Hi-Crush Inc. in June 2019. Hi-Crush Inc. was founded in 2012 and is based in Houston, Texas.

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