Head to Head Contrast: Luxfer Holdings PLC (LXFR) & U.S. Silica Holdings (NYSE:SLCA)
Luxfer Holdings PLC (NYSE: LXFR) and U.S. Silica Holdings (NYSE:SLCA) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitabiliy, dividends, valuation and risk.
Risk & Volatility
Luxfer Holdings PLC has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, U.S. Silica Holdings has a beta of 2.37, indicating that its share price is 137% more volatile than the S&P 500.
This table compares Luxfer Holdings PLC and U.S. Silica Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Luxfer Holdings PLC||4.84%||16.02%||5.29%|
|U.S. Silica Holdings||-4.07%||-1.94%||-1.07%|
Luxfer Holdings PLC pays an annual dividend of $0.48 per share and has a dividend yield of 3.7%. U.S. Silica Holdings pays an annual dividend of $0.25 per share and has a dividend yield of 0.8%. Luxfer Holdings PLC pays out 64.9% of its earnings in the form of a dividend. U.S. Silica Holdings pays out -59.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a breakdown of recent ratings and recommmendations for Luxfer Holdings PLC and U.S. Silica Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Luxfer Holdings PLC||0||0||1||0||3.00|
|U.S. Silica Holdings||1||2||16||1||2.85|
Luxfer Holdings PLC currently has a consensus target price of $16.00, suggesting a potential upside of 23.46%. U.S. Silica Holdings has a consensus target price of $56.66, suggesting a potential upside of 80.84%. Given U.S. Silica Holdings’ higher possible upside, analysts clearly believe U.S. Silica Holdings is more favorable than Luxfer Holdings PLC.
Valuation and Earnings
This table compares Luxfer Holdings PLC and U.S. Silica Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Luxfer Holdings PLC||$409.40 million||0.85||$49.10 million||$0.74||17.51|
|U.S. Silica Holdings||$681.91 million||3.73||$56.62 million||($0.42)||-74.59|
U.S. Silica Holdings has higher revenue and earnings than Luxfer Holdings PLC. U.S. Silica Holdings is trading at a lower price-to-earnings ratio than Luxfer Holdings PLC, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
84.5% of Luxfer Holdings PLC shares are owned by institutional investors. Comparatively, 99.9% of U.S. Silica Holdings shares are owned by institutional investors. 1.0% of U.S. Silica Holdings shares are owned by company insiders. 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.
U.S. Silica Holdings beats Luxfer Holdings PLC on 10 of the 16 factors compared between the two stocks.
Luxfer Holdings PLC Company Profile
Luxfer Holdings PLC is a holding company. The Company is a materials technology company specializing in the design, manufacture and supply of materials, components and gas-containment devices for healthcare, environmental, protection and specialty end-markets. It operates through two divisions: Elektron and Gas Cylinders. Its Elektron Division focuses on specialty materials based primarily on magnesium, zirconium and rare earths. It sells its products through two brands, Magnesium Elektron and MEL Chemicals. Its Gas Cylinders Division manufactures and markets specialized products using aluminum, magnesium, carbon composites and steel. It sells its products through two brands, Luxfer Gas Cylinders and Superform. Its customers include both end users of its products and manufacturers that incorporate its products into finished goods. As of December 31, 2016, it had operated 20 manufacturing plants in the United States, the United Kingdom, Canada, France, the Czech Republic and China.
U.S. Silica Holdings Company Profile
U.S. Silica Holdings, Inc. is a domestic producer of commercial silica, a specialized mineral that is an input into a range of end markets. The Company operates in two segments: Oil & Gas Proppants, and Industrial & Specialty Products. In the Oil & Gas Proppants segment, it serves the oil and gas recovery market providing fracturing sand, or frac sand, which is pumped down oil and natural gas wells to prop open rock fissures and manage the flow rate of natural gas and oil from the wells. As of December 31, 2016, the Industrial & Specialty Products segment consisted of over 215 products and materials, which are used in a range of industries, including container glass, fiberglass, specialty glass, flat glass, building products, fillers and extenders, foundry products, chemicals, recreation products and filtration products. It produces and sells a range of commercial silica products, including whole grain and ground products, as well as other industrial mineral products.
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