Matthews International (NASDAQ:MATW) and IBC Advanced Alloys (OTCMKTS:IAALF) are both small-cap consumer staples companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Dividends

Matthews International pays an annual dividend of $0.80 per share and has a dividend yield of 1.9%. IBC Advanced Alloys does not pay a dividend. Matthews International pays out 20.2% of its earnings in the form of a dividend. Matthews International has increased its dividend for 6 consecutive years.

Profitability

This table compares Matthews International and IBC Advanced Alloys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Matthews International 6.70% 14.94% 5.25%
IBC Advanced Alloys -4.38% -14.57% -5.61%

Institutional & Insider Ownership

82.5% of Matthews International shares are owned by institutional investors. 3.8% of Matthews International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Matthews International and IBC Advanced Alloys’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Matthews International $1.60 billion 0.82 $107.37 million $3.96 10.37
IBC Advanced Alloys $19.40 million 0.37 -$700,000.00 N/A N/A

Matthews International has higher revenue and earnings than IBC Advanced Alloys.

Analyst Ratings

This is a summary of current recommendations and price targets for Matthews International and IBC Advanced Alloys, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Matthews International 0 0 2 0 3.00
IBC Advanced Alloys 0 0 0 0 N/A

Matthews International currently has a consensus price target of $70.50, indicating a potential upside of 71.74%. Given Matthews International’s higher probable upside, analysts plainly believe Matthews International is more favorable than IBC Advanced Alloys.

Risk and Volatility

Matthews International has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, IBC Advanced Alloys has a beta of 2.84, meaning that its stock price is 184% more volatile than the S&P 500.

Summary

Matthews International beats IBC Advanced Alloys on 12 of the 14 factors compared between the two stocks.

Matthews International Company Profile

Matthews International Corporation provides brand solutions, memorialization products, and industrial products in the United States, Central and South America, Canada, Europe, Australia, and Asia. It operates through three segments: SGK Brand Solutions, Memorialization, and Industrial Technologies. The SGK Brand Solutions segment provides brand development, deployment, delivery, brand management, 3-D graphics renderings, pre-media graphics services, printing plates, gravure cylinders, steel bases, embossing tools, special purpose machinery, engineering assistance, print process assistance, print production management, digital asset management, content management, and package design services to brand owners and packaging manufacturers; and creative digital graphics services, as well as designs, engineers, manufactures, and executes merchandising and display systems. The Memorialization segment manufactures and markets a range of memorialization products for use in cemeteries, funeral homes, and crematories. Its products include cast bronze memorials, flush bronze and granite memorials, upright granite memorials and monuments, cremation memorialization products, granite benches, flower vases, crypt plates and letters, cremation urns, niche units, cemetery features and statues, caskets, community and family mausoleums, and other memorialization products, as well as architectural products to identify or commemorate people, places, events, and accomplishments. The Industrial Technologies segment designs, manufactures, and distributes marking and coding equipment and consumables, industrial automation products, and order fulfillment systems for identifying, tracking, picking, and conveying consumer and industrial products. It serves manufacturers, suppliers, and distributors of durable goods and building products; consumer goods manufacturers; and pharmaceutical producers. Matthews International Corporation was founded in 1850 and is based in Pittsburgh, Pennsylvania.

IBC Advanced Alloys Company Profile

IBC Advanced Alloys Corp. develops, produces, and sells specialty alloy products in North America, Europe, and Asia. The company offers various copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze in the form of plates, blocks, bars, and rings, as well as specialty copper alloy forgings for plastic mold tooling and resistance welding parts. It also provides tooling components for the automotive industry, consumer plastic tooling producers, oil and gas service industry, submarine and aircraft carrier producers and repair facilities, electronics industries, and general equipment manufacturers. In addition, the company offers Beralcast alloys, which are beryllium aluminum alloys used in disk drive armatures, automotive braking and structural components, and aerospace and satellite system components. It serves the aerospace, defense, oil and gas, welding, injection molding, and foundry markets. The company was formerly known as International Beryllium Corporation and changed its name to IBC Advanced Alloys Corp. in March 2009. The company was incorporated in 2002 and is headquartered in Franklin, Indiana. IBC Advanced Alloys Corp.(TSXV:IB) operates independently of Vangold Mining Corp. as of November 23, 2010.

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