Financial Review: Intrepid Potash (NYSE:IPI) vs. Compass Minerals International (CMP)

Intrepid Potash (NYSE: IPI) and Compass Minerals International (NYSE:CMP) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitabiliy, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Analyst Recommendations

This is a summary of current recommendations and price targets for Intrepid Potash and Compass Minerals International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intrepid Potash 0 1 0 0 2.00
Compass Minerals International 0 2 0 0 2.00

Intrepid Potash currently has a consensus price target of $2.00, indicating a potential downside of 32.43%. Compass Minerals International has a consensus price target of $69.00, indicating a potential downside of 0.14%. Given Compass Minerals International’s higher probable upside, analysts plainly believe Compass Minerals International is more favorable than Intrepid Potash.

Institutional & Insider Ownership

42.4% of Intrepid Potash shares are held by institutional investors. 27.2% of Intrepid Potash shares are held by insiders. Comparatively, 0.8% of Compass Minerals International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Intrepid Potash has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Compass Minerals International has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Dividends

Compass Minerals International pays an annual dividend of $2.88 per share and has a dividend yield of 4.2%. Intrepid Potash does not pay a dividend. Compass Minerals International pays out 72.9% of its earnings in the form of a dividend. Compass Minerals International has raised its dividend for 13 consecutive years.

Profitability

This table compares Intrepid Potash and Compass Minerals International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intrepid Potash -33.27% -14.71% -10.06%
Compass Minerals International 11.40% 11.86% 3.88%

Valuation and Earnings

This table compares Intrepid Potash and Compass Minerals International’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Intrepid Potash $140.25 million 2.59 -$8.42 million ($0.81) -3.65
Compass Minerals International $1.18 billion 1.98 $250.70 million $3.95 17.49

Compass Minerals International has higher revenue and earnings than Intrepid Potash. Intrepid Potash is trading at a lower price-to-earnings ratio than Compass Minerals International, indicating that it is currently the more affordable of the two stocks.

Summary

Compass Minerals International beats Intrepid Potash on 9 of the 14 factors compared between the two stocks.

Intrepid Potash Company Profile

Intrepid Potash, Inc. is a producer of muriate of potash (potassium chloride or potash) and langbeinite (sulfate of potash magnesia) in the United States, which it markets and sells as Trio. The Company operates in the extraction, production and sale of potassium-related products. Its products are potash and Trio. It sells potash into three markets, including the agricultural market as a fertilizer input; the industrial market as a component in drilling and fracturing fluids for oil and gas wells and an input to other industrial processes, and the animal feed market as a nutrient supplement. Trio, which it mines from langbeinite ore, is its specialty fertilizer that delivers potassium, sulfate and magnesium in a single particle and has low chloride. The Company also produces salt, magnesium chloride, metal recovery salts and brine containing salt and potassium from its mining processes. It produces potash from three solar evaporation solution mining facilities.

Compass Minerals International Company Profile

Compass Minerals International, Inc. (CMI) is a provider of essential minerals that solve nature’s challenges, including salt for winter roadway safety and other consumer, industrial and agricultural uses; specialty plant nutrition minerals for the quality and yield of crops, and specialty chemicals for water treatment and other industrial processes. The Company has three segments: Salt, Plant Nutrition North America and Plant Nutrition South America. The Salt segment produces and markets salt and magnesium chloride for use in road deicing and dust control, food processing, water softeners, and agricultural and industrial applications. Its Plant Nutrition North America segment includes sales of sulfate of potash (SOP) specialty fertilizer and micronutrients. The Plant Nutrition South America segment operates two primary businesses in Brazil: agricultural productivity and chemical solutions.

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