Compass Minerals International (NYSE: CMP) and Marrone Bio Innovations (NASDAQ:MBII) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, profitabiliy, institutional ownership, earnings, risk and analyst recommendations.
Volatility and Risk
Compass Minerals International has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Marrone Bio Innovations has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.
This table compares Compass Minerals International and Marrone Bio Innovations’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Compass Minerals International||11.40%||11.86%||3.88%|
|Marrone Bio Innovations||-189.32%||N/A||-59.64%|
Institutional and Insider Ownership
29.5% of Marrone Bio Innovations shares are owned by institutional investors. 0.8% of Compass Minerals International shares are owned by company insiders. Comparatively, 7.3% of Marrone Bio Innovations shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Compass Minerals International and Marrone Bio Innovations’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Compass Minerals International||$1.18 billion||1.86||$250.70 million||$3.95||16.39|
|Marrone Bio Innovations||$15.53 million||2.08||-$19.96 million||N/A||N/A|
Compass Minerals International has higher revenue and earnings than Marrone Bio Innovations.
Compass Minerals International pays an annual dividend of $2.88 per share and has a dividend yield of 4.4%. Marrone Bio Innovations does not pay a dividend. Compass Minerals International pays out 72.9% of its earnings in the form of a dividend. Marrone Bio Innovations has increased its dividend for 13 consecutive years.
This is a summary of recent recommendations and price targets for Compass Minerals International and Marrone Bio Innovations, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Compass Minerals International||0||2||1||0||2.33|
|Marrone Bio Innovations||0||1||1||0||2.50|
Compass Minerals International currently has a consensus target price of $76.00, suggesting a potential upside of 17.37%. Marrone Bio Innovations has a consensus target price of $2.50, suggesting a potential upside of 142.72%. Given Marrone Bio Innovations’ stronger consensus rating and higher possible upside, analysts clearly believe Marrone Bio Innovations is more favorable than Compass Minerals International.
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.
Marrone Bio Innovations Company Profile
Marrone Bio Innovations, Inc. offers bio-based pest management and plant health products. The Company’s bio-based products include naturally occurring microorganisms, such as bacteria, fungi and plant extracts. It sells its products to crop protection market. Its four crop protection products include Regalia, Grandevo, Venerate and Majestene. Its products are used in both conventional and organic crop production, and are sold to growers of specialty crops, such as grapes, citrus, tomatoes, vegetables, nuts, leafy greens and ornamental plants. It offers Regalia for large-acre row crops, such as corn and soybeans. Its pipeline of early-stage discoveries and product candidates extends across a range of product types for end markets, including herbicides, fungicides, nematicides, insecticides, algaecides (for algae control), molluscicides (for mussel and snail control), and plant growth and plant stress regulators. It is engaged in developing MBI-010, MBI-110, Haven (MBI-505) and MBI-601.
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