Head to Head Review: OR Royalties (NYSE:OR) and Compass Minerals International (NYSE:CMP)

Compass Minerals International (NYSE:CMP) and OR Royalties (NYSE:OR) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for Compass Minerals International and OR Royalties, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Minerals International	2	2	1	0	1.80
OR Royalties	0	4	4	0	2.50

Compass Minerals International currently has a consensus price target of $27.00, suggesting a potential upside of 21.64%. OR Royalties has a consensus price target of $41.00, suggesting a potential upside of 22.75%. Given OR Royalties’ stronger consensus rating and higher possible upside, analysts clearly believe OR Royalties is more favorable than Compass Minerals International.

Volatility & Risk

Compass Minerals International has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, OR Royalties has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.

Valuation & Earnings

This table compares Compass Minerals International and OR Royalties”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Minerals International	$1.24 billion	0.75	-$79.80 million	$0.43	51.62
OR Royalties	$362.74 million	17.16	$206.09 million	$1.50	22.27

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Compass Minerals International	1.42%	12.75%	2.28%
OR Royalties	78.04%	16.41%	14.51%

Insider & Institutional Ownership

99.8% of Compass Minerals International shares are owned by institutional investors. Comparatively, 68.5% of OR Royalties shares are owned by institutional investors. 1.0% of Compass Minerals International shares are owned by insiders. Comparatively, 0.6% of OR Royalties shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

OR Royalties beats Compass Minerals International on 9 of the 14 factors compared between the two stocks.

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.

About OR Royalties

Osisko Gold Royalties Ltd acquires and manages precious metal and other royalties, streams, and other interests in Canada and internationally. It also owns options on offtake; royalty/stream financings; and exclusive rights to participate in future royalty/stream financings on various projects. The company’s primary asset is a 3-5% net smelter return royalty on the Canadian Malartic complex located in Canada. In addition, it is involved in the exploration, evaluation, and development of mining projects. It primarily explores for precious metals, including gold, silver, diamond, and others. Osisko Gold Royalties Ltd was founded in 2014 and is headquartered in Montreal, Canada.