Critical Analysis: Metallus (NYSE:MTUS) and Compass Minerals International (NYSE:CMP)

Compass Minerals International (NYSE:CMP) and Metallus (NYSE:MTUS) are both small-cap materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Profitability

This table compares Compass Minerals International and Metallus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compass Minerals International	1.42%	12.75%	2.28%
Metallus	0.66%	3.35%	2.02%

Risk & Volatility

Compass Minerals International has a beta of 1.22, indicating that its stock price is 22% more volatile than the S&P 500. Comparatively, Metallus has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Compass Minerals International and Metallus, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Minerals International	2	2	1	0	1.80
Metallus	0	3	0	0	2.00

Compass Minerals International currently has a consensus price target of $27.00, suggesting a potential upside of 18.71%. Given Compass Minerals International’s higher possible upside, equities analysts plainly believe Compass Minerals International is more favorable than Metallus.

Insider & Institutional Ownership

99.8% of Compass Minerals International shares are held by institutional investors. Comparatively, 77.6% of Metallus shares are held by institutional investors. 1.0% of Compass Minerals International shares are held by insiders. Comparatively, 3.8% of Metallus shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Compass Minerals International and Metallus”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Minerals International	$1.24 billion	0.77	-$79.80 million	$0.43	52.89
Metallus	$1.16 billion	0.68	-$1.20 million	$0.19	99.73

Metallus has lower revenue, but higher earnings than Compass Minerals International. Compass Minerals International is trading at a lower price-to-earnings ratio than Metallus, indicating that it is currently the more affordable of the two stocks.

Summary

Compass Minerals International beats Metallus on 9 of the 14 factors compared between the two stocks.

About Compass Minerals International

Compass Minerals International, Inc., provides essential minerals in the United States, Canada, the United Kingdom, and internationally. It operates through two segments, Salt and Plant Nutrition. The Salt segment produces, markets, and sells sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products. This segment provides products for use as a deicer for roadways, consumer, and professional use; as an ingredient in chemical production; for water treatment, human, and animal nutrition; and for various other consumer and industrial uses, as well as records management services. The Plant Nutrition segment produces sulfate of potash specialty fertilizers in various grades that are used in broadcast spreaders, direct application, and liquid fertilizer solutions under the Protassium+ brand name; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products; and develops and produces a portfolio of magnesium chloride-based aerial and ground fire retardant products. This segment provides its products to distributors and retailers of crop inputs, as well as growers. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003. Compass Minerals International, Inc. was founded in 1844 and is headquartered in Overland Park, Kansas.

About Metallus

Metallus Inc. manufactures and sells alloy steel, and carbon and micro-alloy steel products in the United States and internationally. The company offers special bar quality (SBQ) bars, seamless mechanical tubes, precision steel components, and billets that are used in gears, hubs, axles, crankshafts and motor shafts, oil country drill pipes, bits and collars, bearing races and rolling elements, bushings, fuel injectors, wind energy shafts, anti-friction bearings, artillery and mortar bodies, and other applications. It also provides custom-make precision steel components. It offers its products and services to the automotive, energy, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. The company was formerly known as TimkenSteel Corporation and changed its name to Metallus Inc. in February 2024. Metallus Inc. was founded in 1899 and is headquartered in Canton, Ohio.