Analyzing Sociedad Quimica y Minera (NYSE:SQM) and SIKA (OTCMKTS:SXYAY)

SIKA (OTCMKTS:SXYAY) and Sociedad Quimica y Minera (NYSE:SQM) are both large-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.

Dividends

SIKA pays an annual dividend of $0.09 per share and has a dividend yield of 0.5%. Sociedad Quimica y Minera pays an annual dividend of $0.14 per share and has a dividend yield of 0.2%. Sociedad Quimica y Minera pays out 8.4% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares SIKA and Sociedad Quimica y Minera”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SIKA	$13.36 billion	2.27	$1.41 billion	N/A	N/A
Sociedad Quimica y Minera	$4.23 billion	4.02	$685.12 million	$1.67	35.61

SIKA has higher revenue and earnings than Sociedad Quimica y Minera.

Analyst Ratings

This is a summary of recent recommendations and price targets for SIKA and Sociedad Quimica y Minera, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SIKA	1	1	2	3	3.00
Sociedad Quimica y Minera	1	7	3	0	2.18

Sociedad Quimica y Minera has a consensus price target of $46.81, suggesting a potential downside of 21.29%. Given Sociedad Quimica y Minera’s higher possible upside, analysts clearly believe Sociedad Quimica y Minera is more favorable than SIKA.

Profitability

This table compares SIKA and Sociedad Quimica y Minera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SIKA	N/A	N/A	N/A
Sociedad Quimica y Minera	11.29%	9.09%	4.17%

Insider & Institutional Ownership

12.4% of Sociedad Quimica y Minera shares are held 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.

Summary

Sociedad Quimica y Minera beats SIKA on 7 of the 13 factors compared between the two stocks.

About SIKA

Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide. The company offers tile adhesives and grouts, systems for under-tile waterproofing, sound reduction, renders, decorative finishes for exterior and interior walls, as well as exterior insulation finishing system; develops admixtures and additives for concrete, cement, and mortar production; and flat roofing systems. It also provides a range of technologies used for below and above-ground waterproofing, including flexible membrane systems, liquid-applied membranes, joint waterproofing systems, and waterproofing mortars and injection resins for commercial and residential basements, tunnels, bridges, and various types of water-retaining structures, such as reservoirs, storage basins, and storage tanks. In addition, the company offers flooring solutions, such as synthetic resin and cementitious systems for industrial and commercial buildings; and sealants, adhesives, tapes, and spray foams for the building facades, interior finishing, and infrastructure projects. Further, it provides repairing, reinforcing, and protective solutions for concrete structures, such as repair mortars, shrinking grouts, anchoring adhesives, protective coatings, corrosion control, and structural strengthening systems. The company serves automobile and commercial vehicle assembly, automotive aftermarket, marine vessel, industrial lamination, renewable energy, home appliance, and facade engineering industries. The company was founded in 1910 and is headquartered in Baar, Switzerland.

About Sociedad Quimica y Minera

Sociedad Química y Minera de Chile S.A. operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders. In addition, the company produces lithium carbonate and lithium hydroxide which are used in the production of cathode material for secondary batteries; lithium chloride; and basic lithium chemicals and lithium derivatives used in lubricating greases for heat-resistant glass, chips for the ceramic and glazing industry, and air conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. Further, it produces potassium sulfate; and potassium chloride which is used as a fertilizer for the application of potassium to different crops. Additionally, the company produces and markets industrial chemicals, such as sodium nitrate mainly used in the production of glass and explosives, metal processing and recycling, and production of insulating materials and adhesives; potassium nitrate used as a raw material to produce frits and special glass, as well as in the enamel, metal treatment, and pyrotechnic sectors; solar salts used as a thermal storage medium in solar power generation plants; and potassium chloride as an additive in oil drilling and food processing sectors. Furthermore, it is involved in the commercialization of third-party fertilizers; and exploration of copper, gold, and silver deposits. The company was founded in 1926 and is headquartered in Santiago, Chile.