Reviewing Materion (MTRN) & The Competition

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

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%

Institutional and Insider Ownership

93.6% of Materion shares are owned by institutional investors. Comparatively, 16.1% of shares of all “Metals & Mining” companies are owned by institutional investors. 2.8% of Materion shares are owned by insiders. Comparatively, 17.6% of shares of all “Metals & Mining” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Materion and its peers top-line revenue, earnings per share 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.

Risk and 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.

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 increased its dividend for 13 consecutive years. Materion lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of recent ratings and target prices for Materion and its peers, as provided 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, indicating 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 probable upside, equities analysts clearly believe Materion is more favorable than its peers.

Summary

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

About Materion

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.