Intrepid Potash (NYSE: IPI) and Emerge Energy Services (NYSE:EMES) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Volatility & Risk
Intrepid Potash has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Emerge Energy Services has a beta of 1.9, meaning that its stock price is 90% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Intrepid Potash and Emerge Energy Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Emerge Energy Services||0||5||3||0||2.38|
Intrepid Potash currently has a consensus price target of $3.56, suggesting a potential downside of 13.32%. Emerge Energy Services has a consensus price target of $13.14, suggesting a potential upside of 87.22%. Given Emerge Energy Services’ stronger consensus rating and higher probable upside, analysts plainly believe Emerge Energy Services is more favorable than Intrepid Potash.
Insider and Institutional Ownership
46.9% of Intrepid Potash shares are held by institutional investors. Comparatively, 18.3% of Emerge Energy Services shares are held by institutional investors. 27.3% of Intrepid Potash shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Intrepid Potash and Emerge Energy Services’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Intrepid Potash||$157.61 million||3.40||-$22.91 million||($0.18)||-22.83|
|Emerge Energy Services||$364.30 million||0.60||-$6.83 million||($0.12)||-58.50|
Emerge Energy Services has higher revenue and earnings than Intrepid Potash. Emerge Energy Services is trading at a lower price-to-earnings ratio than Intrepid Potash, indicating that it is currently the more affordable of the two stocks.
This table compares Intrepid Potash and Emerge Energy Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Emerge Energy Services||-1.88%||-8.54%||-1.29%|
Emerge Energy Services beats Intrepid Potash on 9 of the 13 factors compared between the two stocks.
Intrepid Potash Company Profile
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.
Emerge Energy Services Company Profile
Emerge Energy Services LP, through its subsidiary, Superior Silica Sands LLC, operates an energy services company in the United States. It engages in mining, producing, and distributing silica sand, which is a primary input for the hydraulic fracturing of oil and natural gas wells. The company serves oilfield services companies, and exploration and production companies that are engaged in hydraulic fracturing. Emerge Energy Services GP, LLC operates as the general partner of the company. Emerge Energy Services LP was founded in 2012 and is headquartered in Fort Worth, Texas.
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