Smart Sand (SND) versus Forterra (FRTA) Financial Survey

Smart Sand (NASDAQ: SND) and Forterra (NASDAQ:FRTA) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, profitability, earnings, dividends, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current ratings for Smart Sand and Forterra, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Smart Sand 0 4 6 0 2.60
Forterra 0 4 2 0 2.33

Smart Sand currently has a consensus price target of $13.45, suggesting a potential upside of 47.16%. Forterra has a consensus price target of $11.83, suggesting a potential upside of 9.26%. Given Smart Sand’s stronger consensus rating and higher possible upside, research analysts clearly believe Smart Sand is more favorable than Forterra.

Earnings & Valuation

This table compares Smart Sand and Forterra’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Smart Sand $59.23 million 6.23 $10.37 million $0.66 13.85
Forterra $1.36 billion 0.51 -$7.60 million N/A N/A

Smart Sand has higher earnings, but lower revenue than Forterra.

Institutional & Insider Ownership

49.6% of Smart Sand shares are held by institutional investors. Comparatively, 99.9% of Forterra shares are held by institutional investors. 46.4% of Smart Sand shares are held by insiders. Comparatively, 0.3% of Forterra shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Smart Sand and Forterra’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%
Forterra -5.97% -69.57% -4.00%

Summary

Smart Sand beats Forterra on 9 of the 11 factors compared between the two stocks.

About Smart Sand

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.

About Forterra

Forterra, Inc. is a manufacturer of pipe and precast products. The Company offers products for a range of water-related infrastructure applications, including water transmission, distribution and drainage. The Company operates approximately 95 facilities. Its products are available in the United States and Eastern Canada.

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