Comparing Imerys (OTCMKTS:IMYSF) & Summit Materials (NYSE:SUM)

Imerys (OTCMKTS:IMYSF) and Summit Materials (NYSE:SUM) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Earnings and Valuation

This table compares Imerys and Summit Materials’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Imerys	N/A	N/A	N/A	C$3.23	9.61
Summit Materials	$2.62 billion	2.67	$289.63 million	$2.38	16.86

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

Insider & Institutional Ownership

15.8% of Imerys shares are owned by institutional investors. 0.6% of Summit Materials shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Imerys and Summit Materials, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Imerys	0	0	0	0	N/A
Summit Materials	0	5	7	0	2.58

Summit Materials has a consensus target price of $46.09, indicating a potential upside of 14.85%. Given Summit Materials’ higher possible upside, analysts clearly believe Summit Materials is more favorable than Imerys.

Profitability

This table compares Imerys and Summit Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Imerys	N/A	N/A	N/A
Summit Materials	10.91%	8.73%	4.18%

Summary

Summit Materials beats Imerys on 8 of the 10 factors compared between the two stocks.

About Imerys

Imerys S.A. provides mineral-based specialty solutions for various industries worldwide. The company provides additives for paints, coatings, adhesives, caulks, sealants, and rubber; minerals for technical ceramics and traditional ceramics; functional additives for plastics and thermoset; high-performance binders for dry mix mortars and floor screeds; fillers and coatings for paper, board, and packaging applications; filtration agents for liquids and blood plasma; pharmaceutical diluents, coloring agents, processing aids, glidants, and lubricants for tablet production; engineered minerals for cosmetic industry; food additives to preserve flavor; coating agents to improve fertilizer fow; mineral-based cat litters; alumina for high-performance abrasives and graphite in brake pads; and carbon black for conductivity in onboard data systems. The company also offers minerals used to produce high purity silicon metal for electronics and solar panels; graphite and carbon-based solutions for industrial applications; mineral solutions for batteries and energy storage; refractory minerals and solutions for high-temperature processes; and alumina and zirconia for abrasives. It serves construction and infrastructure, consumer and health care, automotive and transportation, energy and electronics, and industry and equipment industries. The company was incorporated in 1880 and is headquartered in Paris, France. The company is a subsidiary of Belgian Securities BV.

About Summit Materials

Summit Materials, Inc. operates as a vertically integrated construction materials company in the United States and Canada. It operates in three segments: West, East, and Cement. The company offers aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products, as well as plastics components. It also provides asphalt paving and related services. In addition, the company operates municipal waste, construction, and demolition debris landfills; and liquid asphalt terminals. The company serves the public infrastructure, and residential and nonresidential end markets. Summit Materials, Inc. was founded in 2009 and is headquartered in Denver, Colorado.