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Martin Marietta Materials (NYSE:MLM) and Zentek (NASDAQ:ZTEK) Head-To-Head Analysis

Financial News Live ·  Oct 2, 2022 03:52

Martin Marietta Materials (NYSE:MLM – Get Rating) and Zentek (NASDAQ:ZTEK – Get Rating) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Institutional & Insider Ownership

93.5% of Martin Marietta Materials shares are held by institutional investors. Comparatively, 0.8% of Zentek shares are held by institutional investors. 0.6% of Martin Marietta Materials shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

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Profitability

This table compares Martin Marietta Materials and Zentek's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Martin Marietta Materials 13.49% 11.28% 5.17%
Zentek -1,617.24% -405.71% -301.18%

Risk & Volatility

Martin Marietta Materials has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Zentek has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Earnings and Valuation

This table compares Martin Marietta Materials and Zentek's gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Martin Marietta Materials $5.41 billion 3.71 $702.50 million $12.77 25.22
Zentek $280,000.00 589.66 -$30.87 million ($0.13) -12.77

Martin Marietta Materials has higher revenue and earnings than Zentek. Zentek is trading at a lower price-to-earnings ratio than Martin Marietta Materials, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Martin Marietta Materials and Zentek, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Martin Marietta Materials 0 0 12 0 3.00
Zentek 0 0 1 0 3.00

Martin Marietta Materials presently has a consensus price target of $411.18, indicating a potential upside of 27.66%. Zentek has a consensus price target of $3.50, indicating a potential upside of 110.84%. Given Zentek's higher probable upside, analysts clearly believe Zentek is more favorable than Martin Marietta Materials.

Summary

Martin Marietta Materials beats Zentek on 10 of the 13 factors compared between the two stocks.

About Martin Marietta Materials

(Get Rating)

Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally. It offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; and Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. The company also produces magnesia-based chemicals products that are used in industrial, agricultural, and environmental applications; and dolomitic lime primarily to customers for steel production and soil stabilization. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. The company was founded in 1939 and is headquartered in Raleigh, North Carolina.

About Zentek

(Get Rating)

Zentek Ltd. engages in the research and development of graphene and related nanomaterials in Canada. It owns 100% interest in the Albany Graphite project located in Northern Ontario, Canada. The company develops graphene-based antimicrobial coating under the ZenGUARD brand, surgical masks, HVAC filters, personal protective equipment, rapid detection point of care diagnostics tests, and pharmaceutical products based on graphene-based compound. In addition, it develops synthesize graphene, graphene oxide, and graphene quantum dots for applications of graphene. The company was formerly known as ZEN Graphene Solutions Ltd. and changed its name to Zentek Ltd. in October 2021. Zentek Ltd. was incorporated in 2008 and is headquartered in Thunder Bay, Canada.

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