Ciner Resources (NYSE: CINR) and Potash Corporation of Saskatchewan (NYSE:POT) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, dividends, valuation and analyst recommendations.
Risk and Volatility
Ciner Resources has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Potash Corporation of Saskatchewan has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.
Insider and Institutional Ownership
9.3% of Ciner Resources shares are owned by institutional investors. Comparatively, 57.7% of Potash Corporation of Saskatchewan shares are owned by institutional investors. 3.1% of Potash Corporation of Saskatchewan shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Ciner Resources and Potash Corporation of Saskatchewan’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Ciner Resources||$475.20 million||1.01||$41.40 million||$1.90||12.79|
|Potash Corporation of Saskatchewan||$4.46 billion||3.60||$323.00 million||$0.55||34.75|
Potash Corporation of Saskatchewan has higher revenue and earnings than Ciner Resources. Ciner Resources is trading at a lower price-to-earnings ratio than Potash Corporation of Saskatchewan, indicating that it is currently the more affordable of the two stocks.
Ciner Resources pays an annual dividend of $2.27 per share and has a dividend yield of 9.3%. Potash Corporation of Saskatchewan pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Ciner Resources pays out 119.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Potash Corporation of Saskatchewan pays out 72.7% of its earnings in the form of a dividend.
This table compares Ciner Resources and Potash Corporation of Saskatchewan’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Potash Corporation of Saskatchewan||10.21%||5.01%||2.43%|
This is a breakdown of current recommendations and price targets for Ciner Resources and Potash Corporation of Saskatchewan, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Potash Corporation of Saskatchewan||1||4||7||0||2.50|
Ciner Resources currently has a consensus price target of $25.00, indicating a potential upside of 2.84%. Potash Corporation of Saskatchewan has a consensus price target of $19.66, indicating a potential upside of 2.87%. Given Potash Corporation of Saskatchewan’s higher possible upside, analysts clearly believe Potash Corporation of Saskatchewan is more favorable than Ciner Resources.
Potash Corporation of Saskatchewan beats Ciner Resources on 10 of the 16 factors compared between the two stocks.
Ciner Resources Company Profile
Ciner Resources LP, through its subsidiary, Ciner Wyoming LLC (Ciner Wyoming), produces soda ash and serves a global market from its facility in the Green River Basin of Wyoming. The Company processes trona ore into soda ash, a raw material in flat glass, container glass, detergents, chemicals, paper and other consumer and industrial products. As of December 31, 2016, its Green River Basin surface operations were situated on approximately 880 acres in Wyoming, and the Company’s mining operations included approximately 23,500 acres of leased and licensed subsurface mining area. The Company’s mining leases and license are located in two mining beds, designated by the United States Geological Survey as beds 24 and 25, at depths of 800 to 1100 feet, respectively, below the surface. The Company uses a continuous mining technique to mine trona and roof bolt the ceiling simultaneously. The Company’s soda ash is shipped by rail or truck from its Green River Basin operations.
Potash Corporation of Saskatchewan Company Profile
Potash Corporation of Saskatchewan Inc. (PCS) is a fertilizer producer producing a range of primary crop nutrients, such as potash, nitrogen and phosphate. The Company operates through three segments: potash, nitrogen and phosphate. As of December 31, 2016, it owned and operated five potash operations in Saskatchewan and owned one in New Brunswick. Its nitrogen operations involve the production of nitrogen fertilizers and nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate and nitric acid. It has nitrogen facilities in Georgia, Louisiana, Ohio and Trinidad. Its phosphate operations include the manufacture and sale of solid and liquid phosphate fertilizers, phosphate feed and industrial acid, which is used in food products and industrial processes. It has phosphate mines and mineral processing plant complexes in Florida and North Carolina. As of December 31, 2016, the Company had four phosphate feed plants in the United States.
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