Smart Sand (NASDAQ: SND) and Cemex S.A.B. de C.V. (NYSE:CX) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Valuation & Earnings

This table compares Smart Sand and Cemex S.A.B. de C.V.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Smart Sand $59.23 million 5.51 $10.37 million $0.66 12.24
Cemex S.A.B. de C.V. $13.40 billion 0.85 $752.16 million $0.58 13.43

Cemex S.A.B. de C.V. has higher revenue and earnings than Smart Sand. Smart Sand is trading at a lower price-to-earnings ratio than Cemex S.A.B. de C.V., indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

50.9% of Smart Sand shares are owned by institutional investors. Comparatively, 42.8% of Cemex S.A.B. de C.V. shares are owned by institutional investors. 1.0% of Cemex S.A.B. de C.V. 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 Ratings

This is a summary of current recommendations and price targets for Smart Sand and Cemex S.A.B. de C.V., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smart Sand 0 4 6 0 2.60
Cemex S.A.B. de C.V. 0 3 4 1 2.75

Smart Sand presently has a consensus target price of $13.28, suggesting a potential upside of 64.33%. Cemex S.A.B. de C.V. has a consensus target price of $10.46, suggesting a potential upside of 34.31%. Given Smart Sand’s higher probable upside, equities research analysts clearly believe Smart Sand is more favorable than Cemex S.A.B. de C.V..

Profitability

This table compares Smart Sand and Cemex S.A.B. de C.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Smart Sand 18.67% 14.41% 11.85%
Cemex S.A.B. de C.V. 8.38% 8.71% 3.10%

Summary

Smart Sand beats Cemex S.A.B. de C.V. on 8 of the 14 factors compared between the two stocks.

Smart Sand Company Profile

Smart Sand, Inc. is a producer of Northern White raw frac sand, which is a proppant used to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company sells its products primarily to oil and natural gas exploration and production companies and oilfield service companies under a combination of long-term take-or-pay contracts and spot sales in the open market. It owns and operates a raw frac sand mine and related processing facility near Oakdale, Wisconsin. In addition to the Oakdale facility, it owns a second property in Jackson County, Wisconsin, known as Hixton site. Its sand reserves include a balanced concentration of coarse (20/40, 30/50 and 40/70 gradation) sands and fine (60/140 gradation) sand. Its reserves contain deposits of approximately 20% of 20/40 and coarser substrate, over 40% of 40/70 mesh substrate and approximately 40% of 100-mesh substrate. Its 30/50 gradation is a derivative of the 20/40 and 40/70 blends.

Cemex S.A.B. de C.V. Company Profile

CEMEX, S.A.B. de C.V. (CEMEX) is an operating and holding company engaged, directly or indirectly, through its operating subsidiaries, primarily in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates, clinker and other construction materials throughout the world, and that provides construction-related services to customers and communities in over 50 countries throughout the world. The Company operates in various locations, including Mexico, the United States, Europe, South America, Central America, the Caribbean, Asia, the Middle East and Africa. Its cement production facilities are located in Mexico, the United States, Spain, Egypt, Germany, Colombia, the Philippines, Poland, the Dominican Republic, the United Kingdom, Panama, Latvia, Puerto Rico, Thailand, Costa Rica and Nicaragua. The Company is a supplier of aggregates, primarily the crushed stone, sand and gravel, used in various forms of construction.

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