Critical Analysis: Kaiser Aluminum (NASDAQ:KALU) & Silver Standard Resources (NASDAQ:SSRM)

Silver Standard Resources (NASDAQ:SSRM) and Kaiser Aluminum (NASDAQ:KALU) are both mid-cap materials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Dividends

Silver Standard Resources pays an annual dividend of $0.12 per share and has a dividend yield of 0.4%. Kaiser Aluminum pays an annual dividend of $3.08 per share and has a dividend yield of 2.1%. Silver Standard Resources pays out 10.9% of its earnings in the form of a dividend. Kaiser Aluminum pays out 22.8% 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Silver Standard Resources and Kaiser Aluminum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silver Standard Resources	0	2	8	1	2.91
Kaiser Aluminum	1	2	3	0	2.33

Silver Standard Resources currently has a consensus price target of $42.40, suggesting a potential upside of 25.97%. Kaiser Aluminum has a consensus price target of $167.25, suggesting a potential upside of 15.73%. Given Silver Standard Resources’ stronger consensus rating and higher probable upside, research analysts plainly believe Silver Standard Resources is more favorable than Kaiser Aluminum.

Risk & Volatility

Silver Standard Resources has a beta of -0.04, meaning that its stock price is 104% less volatile than the S&P 500. Comparatively, Kaiser Aluminum has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500.

Insider & Institutional Ownership

68.3% of Silver Standard Resources shares are owned by institutional investors. Comparatively, 99.3% of Kaiser Aluminum shares are owned by institutional investors. 0.8% of Silver Standard Resources shares are owned by insiders. Comparatively, 1.3% of Kaiser Aluminum shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Silver Standard Resources and Kaiser Aluminum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silver Standard Resources	12.30%	16.17%	11.84%
Kaiser Aluminum	5.49%	24.71%	7.86%

Earnings & Valuation

This table compares Silver Standard Resources and Kaiser Aluminum”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silver Standard Resources	$1.63 billion	4.16	$395.75 million	$1.10	30.60
Kaiser Aluminum	$4.14 billion	0.57	$112.50 million	$13.49	10.71

Silver Standard Resources has higher earnings, but lower revenue than Kaiser Aluminum. Kaiser Aluminum is trading at a lower price-to-earnings ratio than Silver Standard Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Silver Standard Resources beats Kaiser Aluminum on 10 of the 17 factors compared between the two stocks.

About Silver Standard Resources

SSR Mining Inc., together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was incorporated in 1946 and is based in Denver, Colorado.

About Kaiser Aluminum

Kaiser Aluminum Corporation, together with its subsidiaries, engages in manufacture and sale of semi-fabricated specialty aluminum mill products in the United States and internationally. It offers rolled, extruded, and drawn aluminum products used for aerospace and defense, aluminum beverage and food packaging, automotive and general engineering products. The company's automotive extrusions include extruded aluminum products for structural components, crash management systems, anti-lock braking systems, and drawn tubes for drive shafts, as well as offers fabrication services, including sawing and cutting to length. Its packaging products consist of bare and coated 3000- and 5000-series alloy aluminum coil used for beverage and food packaging industry. In addition, the company's general engineering products comprise alloy plate, sheet, rod, bar, tube, wire, and standard extrusion shapes used in various applications, including the production of military vehicles, ordnances, semiconductor manufacturing cells, electronic devices, after-market motor sport parts, tooling plates, parts for machinery and equipment, bolts, screws, nails, and rivets. Further, its rerolled, extruded, drawn, and cast billet aluminum products used for industrial end uses. The company sells its products directly to customers through sales personnel located in the United States, Canada, Western Europe, and China, as well as through independent sales agents in other regions of Asia, Latin America, and the Middle East. Kaiser Aluminum Corporation was founded in 1946 and is headquartered in Franklin, Tennessee.