Compass Minerals International (NYSE: CMP) and Summit Materials (NYSE:SUM) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.
Compass Minerals International pays an annual dividend of $2.88 per share and has a dividend yield of 4.4%. Summit Materials does not pay a dividend. Compass Minerals International pays out 104.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Compass Minerals International has increased its dividend for 14 consecutive years.
Valuation and Earnings
This table compares Compass Minerals International and Summit Materials’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Compass Minerals International||$1.36 billion||1.63||$42.70 million||$2.75||23.91|
|Summit Materials||$1.93 billion||1.51||$125.80 million||$0.93||28.23|
Summit Materials has higher revenue and earnings than Compass Minerals International. Compass Minerals International is trading at a lower price-to-earnings ratio than Summit Materials, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Compass Minerals International has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Summit Materials has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.
This table compares Compass Minerals International and Summit Materials’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Compass Minerals International||2.39%||12.03%||3.47%|
This is a breakdown of current ratings and recommmendations for Compass Minerals International and Summit Materials, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Compass Minerals International||1||1||4||0||2.50|
Compass Minerals International currently has a consensus target price of $71.50, suggesting a potential upside of 8.75%. Summit Materials has a consensus target price of $33.17, suggesting a potential upside of 26.35%. Given Summit Materials’ stronger consensus rating and higher probable upside, analysts plainly believe Summit Materials is more favorable than Compass Minerals International.
Summit Materials beats Compass Minerals International on 9 of the 15 factors compared between the two stocks.
Compass Minerals International Company Profile
Compass Minerals International, Inc., produces and sells salt, and specialty plant nutrition and chemical products primarily in the United States, Canada, Brazil, and the United Kingdom. It operates in three segments: Salt, Plant Nutrition North America, and Plant Nutrition South America. The Salt segment offers 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 salt 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 provides records management services. The Plant Nutrition North America segment offers sulfate of potash specialty fertilizers in various grades, including agricultural products used in broadcast spreaders, direct application, and liquid fertilizer solutions; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products under the Protassium+ brand; and micronutrient products under the Wolf Trax brand, as well as specialty plant nutrition solution-based products and chemical solutions. This segment provides its products to distributors and retailers of crop inputs, as well as growers. The Plant Nutrition South America segment offers various specialty plant nutrients and supplements; water and wastewater treatment chemicals for cleaning, decontaminating, and purifying water; and process chemicals for industrial use. 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 1993 and is headquartered in Overland Park, Kansas.
Summit Materials Company Profile
Summit Materials, Inc., together with its subsidiaries, produces and sells construction materials and related downstream products. Its products include aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products. The company also provides paving and related services to private and public infrastructure sectors. In addition, it operates municipal waste, construction, and demolition debris landfills; and liquid asphalt terminal. The company operates in the United States, British Columbia, and Canada. Summit Materials, Inc. was founded in 2009 and is headquartered in Denver, Colorado.
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