Analyzing Select Sands (OTCMKTS:SLSDF) and Intrepid Potash (OTCMKTS:IPI)

Select Sands (OTCMKTS:SLSDF) and Intrepid Potash (NYSE:IPI) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Select Sands and Intrepid Potash, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Select Sands 0 0 0 0 N/A
Intrepid Potash 0 1 1 0 2.50

Intrepid Potash has a consensus target price of $5.50, indicating a potential upside of 66.67%. Given Intrepid Potash’s higher probable upside, analysts plainly believe Intrepid Potash is more favorable than Select Sands.

Volatility & Risk

Select Sands has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Intrepid Potash has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Insider and Institutional Ownership

43.6% of Intrepid Potash shares are held by institutional investors. 27.8% of Intrepid Potash shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Select Sands and Intrepid Potash’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Select Sands $20.07 million 0.22 -$470,000.00 N/A N/A
Intrepid Potash $208.27 million 2.08 $11.78 million $0.09 36.67

Intrepid Potash has higher revenue and earnings than Select Sands.

Profitability

This table compares Select Sands and Intrepid Potash’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Select Sands -11.62% -8.60% -6.85%
Intrepid Potash 8.11% 4.02% 3.17%

Summary

Intrepid Potash beats Select Sands on 10 of the 11 factors compared between the two stocks.

About Select Sands

Select Sands Corp. engages in quarrying and producing silica sand. It has an option to acquire a 100% interest in the Sandtown property covering approximately 520 acres located in northeast Arkansas, the United States. Select Sands Corp. sells its products to industrial and energy customers. The company was formerly known as La Ronge Gold Corp. and changed its name to Select Sands Corp. in November 2014. Select Sands Corp. was incorporated in 2006 and is based in Vancouver, Canada.

About Intrepid Potash

Intrepid Potash, Inc. produces and sells potash and langbeinite products in the United States and internationally. It operates through three segments: Potash, Trio, and Oilfield Solutions. The Potash segment offers muriate of potash or potassium chloride for use as a fertilizer input in the agricultural market; as a component in drilling and fracturing fluids for oil and gas wells, as well as an input to other industrial processes in the industrial market; and as a nutrient supplement in the animal feed market. The Trio segment provides Trio, a specialty fertilizer that delivers potassium, sulfate, and magnesium in a single particle. The Oilfield Solutions segment sells water for use in the oil and gas services industry; and offers potassium chloride real-time mixing services on location for hydraulic fracturing operations and trucking services. The company offers salt for use in animal feeds, industrial applications, pool salts, and treatment of roads and walkways; magnesium chloride for use in the deicing and dedusting of roads; brines for well development and completion applications in the oil and gas industry; and metal recovery salt, a combination of potash and salt to enhance the recovery of aluminum in the aluminum recycling processing facilities. Intrepid Potash, Inc. was founded in 2000 and is based in Denver, Colorado.

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