Critical Review: Compass Minerals International (NYSE:CMP) versus Silver Standard Resources (NASDAQ:SSRM)

Compass Minerals International (NYSE:CMP) and Silver Standard Resources (NASDAQ:SSRM) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Compass Minerals International	N/A	N/A	N/A
Silver Standard Resources	N/A	N/A	N/A

Valuation and Earnings

This table compares Compass Minerals International and Silver Standard Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Minerals International	N/A	N/A	N/A	$0.43	53.32
Silver Standard Resources	$1.93 billion	3.05	$221.64 million	$1.10	26.60

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Compass Minerals International and Silver Standard Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Minerals International	2	2	1	0	1.80
Silver Standard Resources	1	1	7	1	2.80

Compass Minerals International presently has a consensus target price of $27.00, indicating a potential upside of 17.75%. Silver Standard Resources has a consensus target price of $42.60, indicating a potential upside of 45.59%. Given Silver Standard Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Silver Standard Resources is more favorable than Compass Minerals International.

Insider & Institutional Ownership

99.8% of Compass Minerals International shares are held by institutional investors. Comparatively, 68.3% of Silver Standard Resources shares are held by institutional investors. 1.0% of Compass Minerals International shares are held by company insiders. Comparatively, 0.8% of Silver Standard Resources shares are held 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.

Summary

Silver Standard Resources beats Compass Minerals International on 6 of the 8 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 Silver Standard Resources

SSR Mining Inc., together with its subsidiaries, engages in the operation, acquisition, exploration, and development of precious metal resource properties in the United States, Türkiye, Canada, and Argentina. The company explores for gold doré, copper, silver, lead, and zinc deposits. Its mines include the Çöpler, located in Erzincan province, Turkey; the Marigold, located in Nevada, the United States; the Seabee, located in Saskatchewan, Canada; and the Puna, located in Jujuy province, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was incorporated in 1946 and is based in Denver, Colorado.