Ciner Resources (NYSE: CINR) and Compass Minerals International (NYSE:CMP) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Volatility & Risk
Ciner Resources has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, Compass Minerals International has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Valuation and Earnings
This table compares Ciner Resources and Compass Minerals International’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ciner Resources||$490.40 million||1.05||$115.10 million||$1.99||12.81|
|Compass Minerals International||$1.24 billion||1.90||$248.20 million||$3.58||19.47|
Compass Minerals International has higher revenue and earnings than Ciner Resources. Ciner Resources 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.
Institutional & Insider Ownership
9.3% of Ciner Resources shares are held by institutional investors. 0.8% of Compass Minerals International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for Ciner Resources and Compass Minerals International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Compass Minerals International||0||3||0||0||2.00|
Ciner Resources presently has a consensus price target of $28.75, suggesting a potential upside of 12.75%. Compass Minerals International has a consensus price target of $67.00, suggesting a potential downside of 3.87%. Given Ciner Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Ciner Resources is more favorable than Compass Minerals International.
Ciner Resources pays an annual dividend of $2.27 per share and has a dividend yield of 8.9%. Compass Minerals International pays an annual dividend of $2.88 per share and has a dividend yield of 4.1%. Ciner Resources pays out 114.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Compass Minerals International pays out 80.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ciner Resources has increased its dividend for 13 consecutive years. Ciner Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Ciner Resources and Compass Minerals International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Compass Minerals International||9.83%||10.01%||3.06%|
Ciner Resources beats Compass Minerals International on 9 of the 17 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.
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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