Comparing Intrepid Potash (IPI) & Israel Chemicals Shs (ICL)

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

Volatility and Risk

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

Institutional & Insider Ownership

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

Profitability

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

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

Dividends

Israel Chemicals Shs pays an annual dividend of $0.10 per share and has a dividend yield of 2.2%. Intrepid Potash does not pay a dividend. Israel Chemicals Shs pays out -66.7% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Intrepid Potash and Israel Chemicals Shs’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Intrepid Potash $133.60 million 3.96 -$86,000.00 ($0.68) -5.97
Israel Chemicals Shs $5.34 billion 1.06 $924.80 million ($0.15) -29.66

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 breakdown of current ratings and price targets for Intrepid Potash and Israel Chemicals Shs, as reported by MarketBeat.com.

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

Intrepid Potash presently has a consensus price target of $3.00, suggesting a potential downside of 26.11%. Israel Chemicals Shs has a consensus price target of $4.88, suggesting a potential upside of 9.55%. Given Israel Chemicals Shs’ higher possible upside, analysts plainly 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.

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 Israel Chemicals Shs

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.

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