Ciner Resources (NYSE: CINR) and Intrepid Potash (NYSE:IPI) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their profitabiliy, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Ciner Resources pays an annual dividend of $2.27 per share and has a dividend yield of 8.3%. Intrepid Potash does not pay a dividend. Ciner Resources pays out 108.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Ciner Resources and Intrepid Potash’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
9.7% of Ciner Resources shares are held by institutional investors. Comparatively, 42.4% of Intrepid Potash shares are held by institutional investors. 27.2% of Intrepid Potash shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for Ciner Resources and Intrepid Potash, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ciner Resources presently has a consensus price target of $32.17, suggesting a potential upside of 18.09%. Intrepid Potash has a consensus price target of $2.00, suggesting a potential downside of 30.31%. Given Ciner Resources’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Ciner Resources is more favorable than Intrepid Potash.
Risk and Volatility
Ciner Resources has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Intrepid Potash has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
Earnings & Valuation
This table compares Ciner Resources and Intrepid Potash’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ciner Resources||$487.40 million||1.12||$118.90 million||$2.10||12.97|
|Intrepid Potash||$140.25 million||2.64||-$8.42 million||($0.81)||-3.54|
Ciner Resources has higher revenue and earnings than Intrepid Potash. Intrepid Potash is trading at a lower price-to-earnings ratio than Ciner Resources, indicating that it is currently the more affordable of the two stocks.
Ciner Resources beats Intrepid Potash on 10 of the 15 factors compared between the two stocks.
About Ciner Resources
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.
About Intrepid Potash
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.
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