Analyzing Materion (MTRN) & Its Rivals

Materion (NYSE:MTRN) is one of 1,984 publicly-traded companies in the “Metals & Mining” industry, but how does it weigh in compared to its peers? We will compare Materion to similar companies based on the strength of its analyst recommendations, dividends, earnings, valuation, institutional ownership, profitability and risk.

Profitability

This table compares Materion and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Materion	4.64%	14.23%	7.52%
Materion Competitors	-1,161,736,352,322,426,600.00%	-52.88%	-2.06%

Risk & Volatility

Materion has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Materion’s peers have a beta of 1.01, indicating that their average share price is 1% more volatile than the S&P 500.

Insider & Institutional Ownership

93.6% of Materion shares are held by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are held by institutional investors. 2.8% of Materion shares are held by insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Materion and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Materion	0	2	3	0	2.60
Materion Competitors	6436	22637	32353	1802	2.47

Materion presently has a consensus target price of $273.00, suggesting a potential upside of 33.99%. As a group, “Metals & Mining” companies have a potential upside of 30.53%. Given Materion’s stronger consensus rating and higher possible upside, research analysts plainly believe Materion is more favorable than its peers.

Valuation & Earnings

This table compares Materion and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Materion	$1.79 billion	$74.82 million	41.75
Materion Competitors	$4.77 billion	$278.26 million	-26.21

Materion’s peers have higher revenue and earnings than Materion. Materion is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Materion pays an annual dividend of $0.58 per share and has a dividend yield of 0.3%. Materion pays out 11.9% of its earnings in the form of a dividend. As a group, “Metals & Mining” companies pay a dividend yield of 10.4% and pay out 10.8% of their earnings in the form of a dividend. Materion has raised its dividend for 13 consecutive years. Materion lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Materion beats its peers on 9 of the 15 factors compared.

Materion Company Profile

Materion Corporation is a specialty materials company that develops and manufactures advanced engineered materials and related services. Its products include beryllium and beryllium alloys, other engineered metals, and materials used in thin-film deposition and other high-performance applications. The company’s materials serve customers in markets such as semiconductors, aerospace and defense, telecommunications, automotive, consumer electronics, and industrial manufacturing. Materion also provides services including materials processing, recycling, and technical support.