Reviewing Nutrien (NTR) and Yara International (YARIY)

Nutrien (NYSE: NTR) and Yara International (OTCMKTS:YARIY) are both large-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Volatility & Risk

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Nutrien has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Yara International has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Dividends

Nutrien pays an annual dividend of $1.60 per share and has a dividend yield of 3.4%. Yara International pays an annual dividend of $0.99 per share and has a dividend yield of 2.4%. Nutrien pays out 126.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Nutrien and Yara International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nutrien 7.19% 1.33% 0.65%
Yara International 4.19% 5.37% 3.35%

Earnings & Valuation

This table compares Nutrien and Yara International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nutrien $4.55 billion 6.69 $327.00 million $1.27 37.20
Yara International $11.36 billion 0.98 $478.16 million N/A N/A

Yara International has higher revenue and earnings than Nutrien.

Insider & Institutional Ownership

0.1% of Yara International shares are held by institutional investors. 3.1% of Nutrien shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Nutrien and Yara International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nutrien 1 6 9 1 2.59
Yara International 0 3 3 0 2.50

Nutrien presently has a consensus price target of $58.14, suggesting a potential upside of 23.05%. Given Nutrien’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Nutrien is more favorable than Yara International.

Summary

Nutrien beats Yara International on 9 of the 16 factors compared between the two stocks.

About Nutrien

Nutrien Ltd. produces and distributes potash, nitrogen, and phosphate products for agricultural, industrial, and feed customers worldwide. It offers potash crop feed, fertilizer, industrial, metal finishing, and purified acid products, as well as blends. The company is also involved in the retail operations that serve growers in seven countries across three continents. Its retail network provides a range of products and services, including micronutrient products, nutritionals, and biologicals; seed solutions; crop protection products and advisory services; application services for the nutrients and crop protection products; and financial credit services. Nutrien Ltd. was founded in 1953 and is headquartered in Saskatoon, Canada.

About Yara International

Yara International ASA provides industrial and environmental products in Norway and internationally. It operates through the Crop Nutrition, Industrial, and Production segments. The company offers ammonia, urea, nitrates, and other nitrogen-based products; crop nutrition products, such as nitrogen, phosphorus, potassium, calcium, magnesium, boron, copper, iron sulfur, manganese, molybdenum, and zinc; calcium ammonium nitrate, ammonium nitrate, urea ammonium nitrate solutions, ammonium sulfate, composite fertilizer products, and field-grade calcium nitrate fertilizers; fertigation and liquid fertilizers, including calcium nitrate, potassium nitrate, and micronutrient chelates, which are used in drip irrigation, sprinkler systems, and pivot agriculture; and foliar products. It also provides chemicals based on blends of nitrates for the latex and rubber industry, biogas production, and solar thermal power sector; and electronics chemicals. In addition, the company offers solutions for NOx and SOx abatement, odor control, and water treatment; technical ammonium nitrate and calcium nitrate for use in the civil explosives and mining industries; single superphosphate and nitric acid; concrete additive; and animal feed minerals, urea, and acidifiers. Further, it offers analytical services for soil, tissue, and water samples. Yara International ASA markets its products under the YaraBela, YaraLiva, YaraMila, YaraVera, and YaraVita brands. The company was founded in 1905 and is headquartered in Oslo, Norway.

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