Monsanto (MON) vs. Intrepid Potash (IPI) Head-To-Head Contrast

Monsanto (NYSE: MON) and Intrepid Potash (NYSE:IPI) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Earnings & Valuation

This table compares Monsanto and Intrepid Potash’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Monsanto $14.64 billion 3.55 $2.26 billion $5.11 23.12
Intrepid Potash $210.95 million 2.45 -$66.63 million ($0.46) -8.59

Monsanto has higher revenue and earnings than Intrepid Potash. Intrepid Potash is trading at a lower price-to-earnings ratio than Monsanto, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Monsanto has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Intrepid Potash has a beta of 1.15, meaning that its stock price is 15% more volatile than the S&P 500.

Insider and Institutional Ownership

74.5% of Monsanto shares are owned by institutional investors. Comparatively, 46.6% of Intrepid Potash shares are owned by institutional investors. 0.8% of Monsanto shares are owned by company insiders. Comparatively, 27.3% of Intrepid Potash shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Monsanto and Intrepid Potash’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monsanto 15.44% 42.40% 11.40%
Intrepid Potash -22.88% -8.09% -6.10%

Analyst Ratings

This is a summary of recent recommendations for Monsanto and Intrepid Potash, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monsanto 0 8 3 0 2.27
Intrepid Potash 0 1 0 0 2.00

Monsanto currently has a consensus target price of $123.67, indicating a potential upside of 4.67%. Intrepid Potash has a consensus target price of $4.00, indicating a potential upside of 1.27%. Given Monsanto’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Monsanto is more favorable than Intrepid Potash.

Dividends

Monsanto pays an annual dividend of $2.16 per share and has a dividend yield of 1.8%. Intrepid Potash does not pay a dividend. Monsanto pays out 42.3% of its earnings in the form of a dividend. Monsanto has raised its dividend for 7 consecutive years.

Summary

Monsanto beats Intrepid Potash on 13 of the 16 factors compared between the two stocks.

About Monsanto

Monsanto Company (Monsanto), along with its subsidiaries, is a provider of agricultural products for farmers. The Company provides seeds, biotechnology trait products, herbicides and digital agriculture tools to farmers. The Company operates through two segments: Seeds and Genomics, and Agricultural Productivity. Through its Seeds and Genomics segment, the Company produces seed brands, including DEKALB, Asgrow, Deltapine, Seminis and De Ruiter, and it develops biotechnology traits that assist farmers in controlling insects and weeds and digital agriculture to assist farmers in decision-making. The Seeds and Genomics segment offers products, such as Germplasm and Biotechnology traits. Through its Agricultural Productivity segment, the Company manufactures Roundup brand herbicides and other herbicides and provides lawn-and-garden herbicide products for the residential market.

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.

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