Critical Comparison: Hydrogenics (HYGS) versus Minerals Technologies (MTX)

Hydrogenics (NASDAQ: HYGS) and Minerals Technologies (NYSE:MTX) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Dividends

Minerals Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 0.3%. Hydrogenics does not pay a dividend. Minerals Technologies pays out 4.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hydrogenics and Minerals Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hydrogenics 0 1 2 0 2.67
Minerals Technologies 0 1 0 0 2.00

Hydrogenics currently has a consensus target price of $10.00, suggesting a potential upside of 30.72%. Given Hydrogenics’ stronger consensus rating and higher probable upside, research analysts clearly believe Hydrogenics is more favorable than Minerals Technologies.

Profitability

This table compares Hydrogenics and Minerals Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hydrogenics -22.86% -47.24% -15.76%
Minerals Technologies 11.77% 13.36% 5.57%

Earnings & Valuation

This table compares Hydrogenics and Minerals Technologies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hydrogenics $48.05 million 2.46 -$11.14 million ($0.80) -9.56
Minerals Technologies $1.68 billion 1.60 $195.10 million $4.59 16.55

Minerals Technologies has higher revenue and earnings than Hydrogenics. Hydrogenics is trading at a lower price-to-earnings ratio than Minerals Technologies, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Hydrogenics has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, Minerals Technologies has a beta of 2.27, suggesting that its share price is 127% more volatile than the S&P 500.

Insider and Institutional Ownership

24.1% of Hydrogenics shares are owned by institutional investors. Comparatively, 94.9% of Minerals Technologies shares are owned by institutional investors. 26.1% of Hydrogenics shares are owned by insiders. Comparatively, 2.4% of Minerals Technologies shares are owned by 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

Minerals Technologies beats Hydrogenics on 10 of the 16 factors compared between the two stocks.

About Hydrogenics

Hydrogenics Corporation, together with its subsidiaries, designs, develops, and manufactures hydrogen generation products based on water electrolysis technology; and fuel cell products based on proton exchange membrane technology. It operates in two segments, OnSite Generation and Power Systems. The OnSite Generation segment develops products for industrial gas, hydrogen fueling, and renewable energy storage markets. It offers HySTAT Hydrogen Stations that supply on-site hydrogen for various hydrogen applications, including vehicle fueling, distributed power, and various industrial processes; and provides spare parts and services. This segment sells its products to original equipment manufacturers (OEMs), merchant gas companies, end users, and oil and gas companies, as well as to electric power utilities. The Power Systems segment develops products for energy storage, stationary, and motive power applications. This segment offers HyPM fuel cell products comprising HyPM fuel cell power modules that produce direct current (DC) power in standard outputs of 2.5, 5, 8, 12, 16, 30, 90, 120, and 200 kW; and HyPX Fuel Cell Power Pack, which includes a standard HyPM power module integrated with hydrogen storage tanks and ultracapacitors to provide higher power in short bursts. Its HyPM fuel cell products also consist of integrated fuel cell systems that are used for portable and stationary applications, including portable and auxiliary power units for military applications, and DC or DC backup power system for cellular tower sites, as well as provides engineering development services for new or custom products. This segment sells its products primarily to OEMs and other integrators, as well as to military, aerospace, and other early adopters of emerging technologies. The company markets its products through direct sales force and a network of distributors worldwide. Hydrogenics Corporation was founded in 1988 and is headquartered in Mississauga, Canada.

About Minerals Technologies

Minerals Technologies Inc. develops, produces, and markets various specialty mineral, mineral-based, and synthetic mineral products, and supporting systems and services worldwide. The company's Specialty Minerals segment produces and sells precipitated calcium carbonate and quicklime; and provides natural mineral products comprising limestone and talc. This segment's products are used in paper, building materials, paint and coatings, glass, ceramic, polymer, food, automotive, and pharmaceutical industries. Its Performance Materials segment supplies bentonite and bentonite-related products, as well as chromite and leonardite. This segment offers metal casting products; household, personal care, and specialty products; and basic minerals, environmental products, and building materials. In addition, this segment provides products for non-residential construction, environmental, and infrastructure projects, as well as for construction project customers. It company's Refractories segment offers monolithic and shaped refractory materials; specialty products, services, and application and measurement equipment; and calcium metal and metallurgical wire products that are used in the applications of steel, non-ferrous metal, and glass industries. Its Energy Services segment provides offshore filtration and well testing services to the oil and gas industry. The company markets its products primarily through its direct sales force, as well as regional distributors. Minerals Technologies Inc. was founded in 1968 and is headquartered in New York City, New York.

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