Hi-Crush Partners (NYSE: HCLP) and United States Lime & Minerals (NASDAQ:USLM) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Profitability

This table compares Hi-Crush Partners and United States Lime & Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hi-Crush Partners 19.44% 18.78% 13.39%
United States Lime & Minerals 18.61% 9.73% 8.61%

Earnings and Valuation

This table compares Hi-Crush Partners and United States Lime & Minerals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hi-Crush Partners $602.62 million 1.80 $82.53 million $1.01 12.18
United States Lime & Minerals $144.84 million 3.25 $27.14 million N/A N/A

Hi-Crush Partners has higher revenue and earnings than United States Lime & Minerals.

Risk and Volatility

Hi-Crush Partners has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, United States Lime & Minerals has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Hi-Crush Partners and United States Lime & Minerals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hi-Crush Partners 0 2 13 0 2.87
United States Lime & Minerals 0 0 0 0 N/A

Hi-Crush Partners presently has a consensus price target of $15.86, suggesting a potential upside of 28.92%. Given Hi-Crush Partners’ higher probable upside, equities research analysts plainly believe Hi-Crush Partners is more favorable than United States Lime & Minerals.

Dividends

Hi-Crush Partners pays an annual dividend of $0.90 per share and has a dividend yield of 7.3%. United States Lime & Minerals pays an annual dividend of $0.54 per share and has a dividend yield of 0.6%. Hi-Crush Partners pays out 89.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hi-Crush Partners has increased its dividend for 5 consecutive years. Hi-Crush Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

27.4% of Hi-Crush Partners shares are owned by institutional investors. Comparatively, 26.0% of United States Lime & Minerals shares are owned by institutional investors. 34.8% of Hi-Crush Partners shares are owned by company insiders. Comparatively, 2.4% of United States Lime & Minerals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Hi-Crush Partners beats United States Lime & Minerals on 12 of the 15 factors compared between the two stocks.

About Hi-Crush Partners

Hi-Crush Partners LP, together with its subsidiaries, provides proppant and logistics solutions to the energy industry in North America. The company produces monocrystalline sand, a specialized mineral used as a proppant during the well completion process to facilitate the recovery of hydrocarbons from oil and natural gas wells. It owns, operates, and develops sand reserves, and excavation and processing facilities, which include 1,447-acre facility with integrated rail infrastructure, located near Independence, Wisconsin and Whitehall, Wisconsin; 971-acre facility with integrated rail infrastructure, located in Wyeville, Wisconsin; 1,187-acre Augusta facility with integrated rail infrastructure, situated in Eau Claire County, Wisconsin; and 1,285-acre facility with integrated rail infrastructure, located near Blair, Wisconsin. The company offers raw frac sand used in hydraulic fracturing process for oil and natural gas wells. 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. Hi-Crush Partners LP was founded in 2012 and is based in Houston, Texas.

About United States Lime & Minerals

United States Lime & Minerals, Inc. manufactures and supplies lime and limestone products in the United States. It operates through two segments, Lime and Limestone Operations, and Natural Gas Interests. The Lime and Limestone Operations segment extracts limestone from open-pit quarries and an underground mine, and processes it as pulverized limestone, quicklime, hydrated lime, and lime slurry. This segment supplies its products primarily to the construction customers, including highway, road, and building contractors; industrial customers, such as paper and glass manufacturers; environmental customers comprising municipal sanitation and water treatment facilities, and flue gas treatment processes; steel producers; oil and gas services companies; roof shingle manufacturers; and poultry and cattle feed producers. The Natural Gas Interests segment has various royalty interests and non-operating working interests with respect to oil and gas rights on approximately 3,800 acres of land located in Johnson County, Texas in the Barnett Shale Formation. The company was founded in 1948 and is headquartered in Dallas, Texas. United States Lime & Minerals, Inc. is a subsidiary of Inberdon Enterprises Ltd.

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