Contrasting Hi-Crush (NYSE:HCR) and U.S. Silica (NYSE:SLCA)

Hi-Crush (NYSE:HCR) and U.S. Silica (NYSE:SLCA) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Analyst Recommendations

This is a summary of current ratings for Hi-Crush and U.S. Silica, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hi-Crush 1 1 0 0 1.50
U.S. Silica 4 5 4 0 2.00

Hi-Crush currently has a consensus target price of $2.00, suggesting a potential upside of 163.16%. U.S. Silica has a consensus target price of $15.08, suggesting a potential upside of 204.10%. Given U.S. Silica’s stronger consensus rating and higher probable upside, analysts clearly believe U.S. Silica is more favorable than Hi-Crush.

Earnings & Valuation

This table compares Hi-Crush and U.S. Silica’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hi-Crush $842.84 million 0.09 $137.59 million $1.49 0.51
U.S. Silica $1.58 billion 0.23 -$200.81 million $1.58 3.14

Hi-Crush has higher earnings, but lower revenue than U.S. Silica. Hi-Crush is trading at a lower price-to-earnings ratio than U.S. Silica, indicating that it is currently the more affordable of the two stocks.

Dividends

U.S. Silica pays an annual dividend of $0.25 per share and has a dividend yield of 5.0%. Hi-Crush does not pay a dividend. U.S. Silica pays out 15.8% of its earnings in the form of a dividend.

Risk and Volatility

Hi-Crush has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, U.S. Silica has a beta of 2.62, meaning that its share price is 162% more volatile than the S&P 500.

Institutional & Insider Ownership

11.5% of Hi-Crush shares are owned by institutional investors. Comparatively, 98.7% of U.S. Silica shares are owned by institutional investors. 34.8% of Hi-Crush shares are owned by company insiders. Comparatively, 2.2% of U.S. Silica shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Hi-Crush and U.S. Silica’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hi-Crush -59.74% -3.18% -1.54%
U.S. Silica -19.58% 2.52% 0.86%

Summary

U.S. Silica beats Hi-Crush on 13 of the 16 factors compared between the two stocks.

About Hi-Crush

Hi-Crush Inc., together with its subsidiaries, provides proppant and logistics solutions to the petroleum industry in North America. The company offers raw frac sand used in hydraulic fracturing process for oil and natural gas wells. It owns and operates multiple frac sand mining facilities, which include a 971-acre facility with integrated rail infrastructure located in Wyeville, Wisconsin; a 1,187-acre facility with integrated rail infrastructure located in Eau Claire County, Wisconsin; a 1,285-acre facility with integrated rail infrastructure located in Blair, Wisconsin; and a 1,626-acre facility with integrated rail infrastructure located in Independence, Wisconsin and Whitehall, Wisconsin. The company also owns and operates a 1,226-acre frac sand reserve located near Kermit, Texas; and 12 terminal locations throughout Pennsylvania, Ohio, Texas, Colorado, and New York. It primarily serves pressure pumping service providers, and oil and gas exploration and production companies. Hi-Crush GP LLC operates as the general partner of the company. The company was formerly known as Hi-Crush Partners LP and changed its name to Hi-Crush Inc. in June 2019. Hi-Crush Inc. was founded in 2012 and is based in Houston, Texas.

About U.S. Silica

U.S. Silica Holdings, Inc. produces and sells commercial silica in the United States. The company operates through two segments, Oil & Gas Proppants and Industrial & Specialty Products. It offers whole grain commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery, as well as sells its whole grain silica products in various size distributions, grain shapes, and chemical purity levels for manufacturing glass products. The company also provides ground commercial silica products for use in plastics, rubber, polishes, cleansers, paints, glazes, textile fiberglass, and precision castings; fine ground silica for use in premium paints, specialty coatings, sealants, silicone rubber, and epoxies; and engineered performance materials made from diatomaceous earth (DE), clay, and perlite. In addition, it offers other industrial mineral products, such as aplite, a mineral used to produce container glass and insulation fiberglass; magnesium silicate, a adsorbent made from a mixture of silica and magnesium for preparative and analytical chromatography applications; and DE and clay aggregates used as an absorbent for automotive, industrial, and sports turf applications. U.S. Silica Holdings, Inc. serves oilfield services companies, and exploration and production companies that are engaged in hydraulic fracturing; and industrial and specialty products end markets. The company was formerly known as GGC USS Holdings, Inc. U.S. Silica Holdings, Inc. was incorporated in 2008 and is headquartered in Katy, Texas.

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