Head to Head Review: Ciner Resources (CINR) vs. Teck Resources (TECK)

Ciner Resources (NYSE: CINR) and Teck Resources (NYSE:TECK) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Profitability

This table compares Ciner Resources and Teck Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ciner Resources 8.29% 16.54% 9.22%
Teck Resources 22.03% 13.66% 7.34%

Dividends

Ciner Resources pays an annual dividend of $2.27 per share and has a dividend yield of 8.9%. Teck Resources pays an annual dividend of $0.16 per share and has a dividend yield of 0.5%. Ciner Resources pays out 109.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Teck Resources pays out 4.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ciner Resources and Teck Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ciner Resources 0 2 1 0 2.33
Teck Resources 1 6 9 1 2.59

Ciner Resources currently has a consensus price target of $28.67, suggesting a potential upside of 12.29%. Teck Resources has a consensus price target of $31.61, suggesting a potential upside of 8.00%. Given Ciner Resources’ higher probable upside, research analysts plainly believe Ciner Resources is more favorable than Teck Resources.

Volatility & Risk

Ciner Resources has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Teck Resources has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.

Insider and Institutional Ownership

10.1% of Ciner Resources shares are owned by institutional investors. Comparatively, 56.3% of Teck Resources shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Ciner Resources and Teck Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ciner Resources $497.30 million 1.01 $41.60 million $2.07 12.33
Teck Resources $9.29 billion 1.78 $1.94 billion $3.43 8.53

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

Summary

Teck Resources beats Ciner Resources on 11 of the 16 factors compared between the two stocks.

Ciner Resources Company Profile

Ciner Resources LP engages in the trona ore mining and soda ash production businesses in the United States and internationally. It processes trona ore into soda ash, which is a raw material in flat glass, container glass, detergents, chemicals, paper, and other consumer and industrial products. The company has approximately 23,500 acres of leased and licensed subsurface mining areas in the Green River Basin of Wyoming. As of December 31, 2017, it had proven and probable reserves of approximately 240.1 million short tons of trona. Ciner Resource Partners LLC serves as the general partner of the company. The company was formerly known as OCI Resources LP and changed its name to Ciner Resources LP in November 2015. Ciner Resources LP is based in Atlanta, Georgia. Ciner Resources LP is a subsidiary of Ciner Wyoming Holding Co.

Teck Resources Company Profile

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.

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