Dynamic Materials (NASDAQ: BOOM) and SunCoke Energy Partners (NYSE:SXCP) are both small-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Institutional and Insider Ownership

86.4% of Dynamic Materials shares are held by institutional investors. Comparatively, 13.3% of SunCoke Energy Partners shares are held by institutional investors. 5.1% of Dynamic Materials shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Dynamic Materials pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. SunCoke Energy Partners pays an annual dividend of $2.38 per share and has a dividend yield of 14.1%. Dynamic Materials pays out -6.0% of its earnings in the form of a dividend. SunCoke Energy Partners pays out -129.3% 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. SunCoke Energy Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Dynamic Materials and SunCoke Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dynamic Materials -10.69% -1.20% -0.81%
SunCoke Energy Partners -9.04% 15.35% 5.55%

Valuation and Earnings

This table compares Dynamic Materials and SunCoke Energy Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dynamic Materials $158.57 million 2.07 -$6.50 million ($1.33) -16.73
SunCoke Energy Partners $779.70 million 1.00 $119.10 million ($1.84) -9.18

SunCoke Energy Partners has higher revenue and earnings than Dynamic Materials. Dynamic Materials is trading at a lower price-to-earnings ratio than SunCoke Energy Partners, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Dynamic Materials has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, SunCoke Energy Partners has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Dynamic Materials and SunCoke Energy Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dynamic Materials 0 0 1 0 3.00
SunCoke Energy Partners 0 0 1 0 3.00

Dynamic Materials currently has a consensus price target of $22.00, suggesting a potential downside of 1.12%. Given Dynamic Materials’ higher probable upside, analysts clearly believe Dynamic Materials is more favorable than SunCoke Energy Partners.

Summary

SunCoke Energy Partners beats Dynamic Materials on 8 of the 13 factors compared between the two stocks.

Dynamic Materials Company Profile

DMC Global Inc., formerly Dynamic Materials Corporation, is a diversified technology company. The Company operates a family of technical product and process businesses serving the energy, industrial and infrastructure markets. The Company’s businesses operate through an international network of manufacturing, distribution and sales facilities. The Company’s segments are NobelClad and DynaEnergetics. The NobelClad segment is engaged in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. It owns explosive metalworking and metallic processes, and registered trademarks, including Detaclad, Detacouple, EFTEK, ETJ 2000 and NOBELCLAD.

SunCoke Energy Partners Company Profile

SunCoke Energy Partners, L.P. is engaged in the production of coke used in the blast furnace production of steel. As of December 31, 2016, the Company owned a 98% interest in Haverhill Coke Company LLC (Haverhill), Middletown Coke Company, LLC (Middletown), and Gateway Energy and Coke Company, LLC (Granite City). The Company’s segments include Domestic Coke, which consists of the Haverhill, Middletown and Granite City cokemaking and heat recovery operations located in Franklin Furnace, Ohio; Middletown, Ohio, and Granite City, Illinois, respectively, and Coal Logistics, which consists of the Company’s Convent Marine Terminal, Kanawha River Terminals, LLC and SunCoke Lake Terminal, LLC (Lake Terminal) coal handling and/or mixing service operations in Convent, Louisiana; Ceredo and Belle, West Virginia, and East Chicago, Indiana, respectively. It also provides coal handling and/or mixing services at its Coal Logistics terminals to steel, coke, electric utility and coal mining customers.

Receive News & Ratings for Dynamic Materials Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dynamic Materials Corp. and related companies with MarketBeat.com's FREE daily email newsletter.