Sociedad Quimica y Minera (NYSE:SQM) versus Sensient Technologies (NYSE:SXT) Financial Survey

Sensient Technologies (NYSE:SXT) and Sociedad Quimica y Minera (NYSE:SQM) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Dividends

Sensient Technologies pays an annual dividend of $1.64 per share and has a dividend yield of 1.5%. Sociedad Quimica y Minera pays an annual dividend of $2.65 per share and has a dividend yield of 3.7%. Sensient Technologies pays out 48.4% of its earnings in the form of a dividend. Sociedad Quimica y Minera pays out 93.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Sensient Technologies has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Sociedad Quimica y Minera has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

90.9% of Sensient Technologies shares are held by institutional investors. Comparatively, 12.4% of Sociedad Quimica y Minera shares are held by institutional investors. 1.3% of Sensient Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Sensient Technologies and Sociedad Quimica y Minera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sensient Technologies	8.71%	13.12%	6.97%
Sociedad Quimica y Minera	15.38%	11.99%	6.09%

Analyst Ratings

This is a summary of recent ratings for Sensient Technologies and Sociedad Quimica y Minera, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensient Technologies	0	2	2	0	2.50
Sociedad Quimica y Minera	1	8	5	1	2.40

Sensient Technologies currently has a consensus price target of $134.00, indicating a potential upside of 18.64%. Sociedad Quimica y Minera has a consensus price target of $74.58, indicating a potential upside of 4.85%. Given Sensient Technologies’ stronger consensus rating and higher probable upside, research analysts clearly believe Sensient Technologies is more favorable than Sociedad Quimica y Minera.

Earnings & Valuation

This table compares Sensient Technologies and Sociedad Quimica y Minera”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sensient Technologies	$1.61 billion	2.98	$134.49 million	$3.39	33.32
Sociedad Quimica y Minera	$4.58 billion	4.44	$588.14 million	$2.85	24.96

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

Summary

Sensient Technologies beats Sociedad Quimica y Minera on 9 of the 17 factors compared between the two stocks.

About Sensient Technologies

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, Asia, Australia, South America, and Africa. The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; and chili powder, paprika, and chili pepper, as well as dehydrated vegetables comprising parsley, celery, and spinach to the food, beverage, and personal care industries. It also provides natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, including colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications under the Sensient Food Colors, Sensient Pharmaceutical Coating Systems, Sensient Cosmetic Technologies, and Sensient Specialty Markets trade names. Sensient Technologies Corporation was incorporated in 1882 and is headquartered in Milwaukee, Wisconsin.

About Sociedad Quimica y Minera

Sociedad Química y Minera de Chile S.A. operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders. In addition, the company produces lithium carbonate and lithium hydroxide which are used in the production of cathode material for secondary batteries; lithium chloride; and basic lithium chemicals and lithium derivatives used in lubricating greases for heat-resistant glass, chips for the ceramic and glazing industry, and air conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. Further, it produces potassium sulfate; and potassium chloride which is used as a fertilizer for the application of potassium to different crops. Additionally, the company produces and markets industrial chemicals, such as sodium nitrate mainly used in the production of glass and explosives, metal processing and recycling, and production of insulating materials and adhesives; potassium nitrate used as a raw material to produce frits and special glass, as well as in the enamel, metal treatment, and pyrotechnic sectors; solar salts used as a thermal storage medium in solar power generation plants; and potassium chloride as an additive in oil drilling and food processing sectors. Furthermore, it is involved in the commercialization of third-party fertilizers; and exploration of copper, gold, and silver deposits. The company was founded in 1926 and is headquartered in Santiago, Chile.