Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

The following is a list of materials stocks that have a track record of being more profitable than their competitors, based on the 5-year average net profit margin and gross margin.

Will this track record of profitability translate into stock gains? What do you think? Full analysis below.

Profitability data sourced from Reuters, performance data sourced from Finviz.

click for expanded image

1. Hallador Energy Company (NASDAQ:HNRG): Independent Oil & Gas Industry. Market cap of $315.42M. 5-year average gross margin at 40.8% vs. industry average at 0.44%. 5-year average net profit margin at 13.38% vs. industry average at 0.18%. Short float at 0.53%, which implies a short ratio of 12.45 days. The stock has gained 53.38% over the last year.

2. Patriot Coal Corporation (PCX): Industrial Metals & Minerals Industry. Market cap of $1.49B. 5-year average gross margin at 12.43% vs. industry average at 0.44%. 5-year average net profit margin at 2.9% vs. industry average at 0.18%. Short float at 16.08%, which implies a short ratio of 3.15 days. The stock has gained 20.06% over the last year.

3. WD-40 Company (NASDAQ:WDFC): Specialty Chemicals Industry. Market cap of $687.27M. 5-year average gross margin at 48.87% vs. industry average at 7.12%. 5-year average net profit margin at 9.81% vs. industry average at 1.22%. Short float at 2.38%, which implies a short ratio of 6.1 days. The stock has gained 35.62% over the last year.

4. TC Pipelines LP (TCLP): Oil & Gas Pipelines Industry. Market cap of $2.18B. 5-year average gross margin at 100.0% vs. industry average at 16.17%. 5-year average net profit margin at 66.35% vs. industry average at 9.14%. Short float at 0.59%, which implies a short ratio of 1.99 days. The stock has gained 38.61% over the last year.

5. BP Prudhoe Bay Royalty Trust (NYSE:BPT): Oil & Gas Refining & Marketing Industry. Market cap of $2.47B. 5-year average gross margin at 100.0% vs. industry average at 43.11%. 5-year average net profit margin at 99.23% vs. industry average at 11.05%. Short float at 2.01%, which implies a short ratio of 3.84 days. The stock has gained 60.75% over the last year.

6. NovaGold Resources Inc. (NYSEMKT:NG): Gold Industry. Market cap of $3.2B. 5-year average gross margin at 85.54% vs. industry average at 40.98%. 5-year average net profit margin at -1649.87% vs. industry average at -0.46%. Short float at 8.26%, which implies a short ratio of 2.71 days. The stock has gained 160.44% over the last year.

7. Atwood Oceanics, Inc. (NYSE:ATW): Oil & Gas Drilling & Exploration Industry. Market cap of $2.38B. 5-year average gross margin at 58.18% vs. industry average at 19.14%. 5-year average net profit margin at 38.81% vs. industry average at 10.47%. Short float at 10.32%, which implies a short ratio of 8.09 days. The stock has gained 0.63% over the last year.

8. Western Gas Partners Lp (NYSE:WES): Oil & Gas Pipelines Industry. Market cap of $2.16B. 5-year average gross margin at 65.73% vs. industry average at 24.44%. 5-year average net profit margin at 21.44% vs. industry average at 9.88%. Short float at 0.49%, which implies a short ratio of 0.67 days. The stock has gained 77.6% over the last year.

9. Sigma-Aldrich Corporation (NASDAQ:SIAL): Specialty Chemicals Industry. Market cap of $8.1B. 5-year average gross margin at 51.0% vs. industry average at 23.32%. 5-year average net profit margin at 15.58% vs. industry average at 4.17%. Short float at 4.22%, which implies a short ratio of 7.98 days. The stock has gained 31.76% over the last year.

10. Spectra Energy Partners, LP (NYSE:SEP): Oil & Gas Pipelines Industry. Market cap of $3.4B. 5-year average gross margin at 69.49% vs. industry average at 39.24%. 5-year average net profit margin at 93.21% vs. industry average at 13.69%. Short float at 0.24%, which implies a short ratio of 0.69 days. The stock has gained 17.1% over the last year.

11. International Flavors & Fragrances Inc. (NYSE:IFF): Specialty Chemicals Industry. Market cap of $4.41B. 5-year average gross margin at 41.21% vs. industry average at 18.63%. 5-year average net profit margin at 9.85% vs. industry average at 6.59%. Short float at 0.79%, which implies a short ratio of 1.38 days. The stock has gained 37.24% over the last year.

12. GeoResources, Inc. (NASDAQ:GEOI): Independent Oil & Gas Industry. Market cap of $418.26M. 5-year average gross margin at 98.45% vs. industry average at 43.11%. 5-year average net profit margin at 13.61% vs. industry average at 11.05%. Short float at 3.39%, which implies a short ratio of 4.19 days. The stock has gained 74.57% over the last year.

13. Noble Energy, Inc. (NYSE:NBL): Independent Oil & Gas Industry. Market cap of $14.89B. 5-year average gross margin at 80.14% vs. industry average at 43.11%. 5-year average net profit margin at 23.86% vs. industry average at 11.05%. Short float at 2.64%, which implies a short ratio of 3.18 days. The stock has gained 20.66% over the last year.

14. TransGlobe Energy Corp. (NASDAQ:TGA): Independent Oil & Gas Industry. Market cap of $1.01B. 5-year average gross margin at 82.04% vs. industry average at 43.11%. 5-year average net profit margin at 16.54% vs. industry average at 11.05%. Short float at 0.39%, which implies a short ratio of 0.44 days. The stock has gained 332.09% over the last year.

15. Concho Resources, Inc. (NYSE:CXO): Oil & Gas Drilling & Exploration Industry. Market cap of $8.67B. 5-year average gross margin at 81.17% vs. industry average at 43.11%. 5-year average net profit margin at 19.43% vs. industry average at 11.05%. Short float at 5.31%, which implies a short ratio of 5.14 days. The stock has gained 90.19% over the last year.

Source: 15 Most Profitable Materials Stocks