Tronox (NYSE:TROX) & Compass Minerals International (NYSE:CMP) Head-To-Head Contrast

Tronox (NYSE:TROX) and Compass Minerals International (NYSE:CMP) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.

Earnings and Valuation

This table compares Tronox and Compass Minerals International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tronox	$2.90 billion	0.38	-$470.00 million	($2.92)	-2.36
Compass Minerals International	$1.24 billion	0.97	-$79.80 million	$0.15	191.13

Compass Minerals International has lower revenue, but higher earnings than Tronox. Tronox 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.

Volatility & Risk

Tronox has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Compass Minerals International has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Insider and Institutional Ownership

73.4% of Tronox shares are owned by institutional investors. Comparatively, 99.8% of Compass Minerals International shares are owned by institutional investors. 2.0% of Tronox shares are owned by insiders. Comparatively, 1.0% of Compass Minerals International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tronox	-15.82%	-19.93%	-4.86%
Compass Minerals International	0.55%	8.99%	1.54%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Tronox and Compass Minerals International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tronox	3	6	2	0	1.91
Compass Minerals International	1	3	1	0	2.00

Tronox currently has a consensus target price of $6.63, indicating a potential downside of 3.96%. Compass Minerals International has a consensus target price of $28.80, indicating a potential upside of 0.46%. Given Compass Minerals International’s stronger consensus rating and higher possible upside, analysts clearly believe Compass Minerals International is more favorable than Tronox.

Summary

Compass Minerals International beats Tronox on 11 of the 14 factors compared between the two stocks.

About Tronox

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; monazite; titanium tetrachloride; and other products. The company’s products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc is based in Stamford, Connecticut.

About Compass Minerals International

Compass Minerals International, Inc., provides essential minerals in the United States, Canada, the United Kingdom, and internationally. It operates through two segments, Salt and Plant Nutrition. The Salt segment produces, markets, and sells sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products. This segment provides products for use as a deicer for roadways, consumer, and professional use; as an ingredient in chemical production; for water treatment, human, and animal nutrition; and for various other consumer and industrial uses, as well as records management services. The Plant Nutrition segment produces sulfate of potash specialty fertilizers in various grades that are used in broadcast spreaders, direct application, and liquid fertilizer solutions under the Protassium+ brand name; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products; and develops and produces a portfolio of magnesium chloride-based aerial and ground fire retardant products. This segment provides its products to distributors and retailers of crop inputs, as well as growers. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003. Compass Minerals International, Inc. was founded in 1844 and is headquartered in Overland Park, Kansas.