Intrepid Potash (NYSE:IPI – Get Free Report) and Flotek Industries (NYSE:FTK – Get Free Report) are both small-cap materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.
Volatility and Risk
Intrepid Potash has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Flotek Industries has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Earnings & Valuation
This table compares Intrepid Potash and Flotek Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Intrepid Potash | $301.63 million | 1.77 | $11.19 million | $1.98 | 20.00 |
| Flotek Industries | $237.26 million | 4.66 | $30.53 million | $0.99 | 30.83 |
Flotek Industries has lower revenue, but higher earnings than Intrepid Potash. Intrepid Potash is trading at a lower price-to-earnings ratio than Flotek Industries, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Intrepid Potash and Flotek Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Intrepid Potash | 1 | 1 | 0 | 2 | 2.75 |
| Flotek Industries | 0 | 1 | 4 | 0 | 2.80 |
Intrepid Potash currently has a consensus target price of $29.00, suggesting a potential downside of 26.76%. Flotek Industries has a consensus target price of $34.67, suggesting a potential upside of 13.59%. Given Flotek Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Flotek Industries is more favorable than Intrepid Potash.
Profitability
This table compares Intrepid Potash and Flotek Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Intrepid Potash | 8.94% | 4.74% | 3.73% |
| Flotek Industries | 12.97% | 21.57% | 10.89% |
Insider and Institutional Ownership
56.1% of Intrepid Potash shares are owned by institutional investors. Comparatively, 10.9% of Flotek Industries shares are owned by institutional investors. 2.3% of Intrepid Potash shares are owned by insiders. Comparatively, 2.4% of Flotek Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Flotek Industries beats Intrepid Potash on 11 of the 15 factors compared between the two stocks.
About Intrepid Potash
Intrepid Potash, Inc., together with its subsidiaries, engages in the extraction and production of the potash in the United States and internationally. It operates through three segments: Potash, Trio, and Oilfield Solutions. The company offers muriate of potash for various markets, such as agricultural market as a fertilizer input; the industrial market as a component in drilling and fracturing fluids for oil and gas wells, as well as an input to other industrial processes; and the animal feed market as a nutrient supplement. It also provides Trio, a specialty fertilizer that delivers potassium, sulfate, and magnesium in a single particle; water for oil and gas services industry; salt for various markets, including animal feed, industrial applications, pool salt, and the treatment of roads and walkways for ice melting or to manage road conditions; magnesium chloride for use as a road treatment agent for deicing and dedusting; brines for use in oil and gas industry to support well workover and completion activities; and metal recovery salts. Intrepid Potash, Inc. was founded in 1999 and is based in Denver, Colorado.
About Flotek Industries
Flotek Industries, Inc. operates as a technology-driven green chemistry and data company that serves customers across industrial and commercial markets in the United States, the United Arab Emirates, and internationally. It operates through two segments: Chemistry Technologies (CT) and Data Analytics (DA). The CT segment designs, develops, manufactures, packages, distributes, delivers, and markets green specialty chemicals that enhance the profitability of hydrocarbon producers, as well as green specialty chemistries, and logistics and technology services. This segment primarily serves integrated oil and gas, oilfield services, independent oil and gas, national and state-owned oil, geothermal energy, solar energy, and alternative energy companies. The DA segment designs, develops, produces, sells, and supports equipment and services that create and provide valuable information on the composition and properties of energy customers' hydrocarbon fluids. It sells its products directly through a mix of in-house sales professionals, as well as contractual agency agreements. Flotek Industries, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.
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