Israel Chemicals Shs (NYSE: ICL) and Intrepid Potash (NYSE:IPI) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Profitability

This table compares Israel Chemicals Shs and Intrepid Potash’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Israel Chemicals Shs -3.43% 13.55% 4.20%
Intrepid Potash -30.56% -12.37% -8.86%

Dividends

Israel Chemicals Shs pays an annual dividend of $0.10 per share and has a dividend yield of 2.3%. Intrepid Potash does not pay a dividend. Israel Chemicals Shs pays out -66.7% of its earnings in the form of a dividend.

Risk and Volatility

Israel Chemicals Shs has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Intrepid Potash has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Institutional and Insider Ownership

5.9% of Israel Chemicals Shs shares are held by institutional investors. Comparatively, 47.3% of Intrepid Potash shares are held by institutional investors. 27.3% of Intrepid Potash shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Israel Chemicals Shs and Intrepid Potash’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Israel Chemicals Shs $5.34 billion 1.02 $924.80 million ($0.15) -28.46
Intrepid Potash $133.60 million 3.72 -$86,000.00 ($0.68) -5.62

Israel Chemicals Shs has higher revenue and earnings than Intrepid Potash. Israel Chemicals Shs is trading at a lower price-to-earnings ratio than Intrepid Potash, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations for Israel Chemicals Shs and Intrepid Potash, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Israel Chemicals Shs 0 2 0 0 2.00
Intrepid Potash 0 1 0 0 2.00

Israel Chemicals Shs currently has a consensus price target of $4.88, indicating a potential upside of 14.17%. Intrepid Potash has a consensus price target of $3.00, indicating a potential downside of 21.47%. Given Israel Chemicals Shs’ higher possible upside, equities research analysts clearly believe Israel Chemicals Shs is more favorable than Intrepid Potash.

Summary

Israel Chemicals Shs beats Intrepid Potash on 10 of the 13 factors compared between the two stocks.

Israel Chemicals Shs Company Profile

Israel Chemicals Ltd. operates as a specialty minerals company worldwide. The company operates through two segments, Essential Minerals and Specialty Solutions. The company extracts potash from the Dead Sea; mines and produces potash and salt from subterranean mines in Spain and the United Kingdom, as well as uses part of the potash to produce compound fertilizers; mines and processes phosphate rock in open mines; and produces sulfuric acid, agricultural phosphoric acid, phosphate fertilizers, compound fertilizers, liquid fertilizers, and soluble fertilizers. It also manufactures compound fertilizers in the Netherlands, Germany, and Belgium; liquid fertilizers and soluble fertilizers in Spain; slow release and controlled release fertilizers in the Netherlands and the United States; and phosphate-based food additives for livestock in Turkey and Israel. In addition, the company produces bromine out of a solution that is created as a by-product of the potash production process in Sodom, as well as bromine-based products; chlorine-based products in Israel and the United States; and flame retardants and phosphorus based products, as well as extracts salt, magnesia, and chlorine from Dead Sea brine. Further, it purchases clean phosphoric acid and manufactures thermal phosphoric acids, which are used to manufacture downstream products and phosphate salts that are used as a raw material for manufacturing, food additives, hygiene products and flame retardants, and fire extinguishment products. It also manufactures phosphorous derivatives based on phosphorous; specialty products based on aluminum acids; and other raw materials. The company sells its products through marketing companies, agents, and distributors. Israel Chemicals Ltd. was founded in 1968 and is headquartered in Tel Aviv, Israel.

Intrepid Potash Company Profile

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.

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