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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Compass Minerals International and Ciner Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Compass Minerals International 0 3 0 0 2.00
Ciner Resources 0 2 1 0 2.33

Compass Minerals International presently has a consensus target price of $67.00, indicating a potential downside of 1.54%. Ciner Resources has a consensus target price of $28.75, indicating a potential upside of 20.85%. Given Ciner Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Ciner Resources is more favorable than Compass Minerals International.

Risk and Volatility

Compass Minerals International has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Ciner Resources has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Valuation and Earnings

This table compares Compass Minerals International and Ciner Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Compass Minerals International $1.24 billion 1.86 $248.20 million $3.58 19.01
Ciner Resources $490.40 million 0.98 $115.10 million $1.99 11.95

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.

Profitability

This table compares Compass Minerals International and Ciner Resources’ 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 8.18% 15.65% 9.52%

Dividends

Compass Minerals International pays an annual dividend of $2.88 per share and has a dividend yield of 4.2%. Ciner Resources pays an annual dividend of $2.27 per share and has a dividend yield of 9.5%. 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 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. Ciner Resources has raised 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.

Insider & Institutional Ownership

9.3% of Ciner Resources shares are owned by institutional investors. 0.8% of Compass Minerals International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Ciner Resources beats Compass Minerals International on 9 of the 17 factors compared between the two stocks.

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.

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.

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