Intrepid Potash (NYSE: IPI) and Ciner Resources (NYSE:CINR) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitabiliy, institutional ownership, analyst recommendations, risk and dividends.

Profitability

This table compares Intrepid Potash and Ciner Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Intrepid Potash -33.27% -14.71% -10.06%
Ciner Resources 8.68% 16.31% 10.20%

Dividends

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.

Insider and Institutional Ownership

42.4% of Intrepid Potash shares are owned by institutional investors. Comparatively, 9.7% of Ciner Resources shares are owned by institutional investors. 27.2% of Intrepid Potash shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Intrepid Potash and Ciner Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Intrepid Potash 0 1 0 0 2.00
Ciner Resources 0 2 1 0 2.33

Intrepid Potash presently has a consensus target price of $2.00, indicating a potential downside of 27.01%. Ciner Resources has a consensus target price of $32.17, indicating a potential upside of 17.01%. Given Ciner Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Ciner Resources is more favorable than Intrepid Potash.

Earnings & Valuation

This table compares Intrepid Potash and Ciner Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Intrepid Potash $140.25 million 2.52 -$8.42 million ($0.81) -3.38
Ciner Resources $487.40 million 1.14 $118.90 million $2.10 13.09

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.

Volatility and Risk

Intrepid Potash has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Ciner Resources has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Summary

Ciner Resources beats Intrepid Potash on 10 of the 15 factors compared between the two stocks.

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.

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.

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