Financial Survey: CVR Partners (UAN) vs. Israel Chemicals (ICL)

CVR Partners (NYSE: UAN) and Israel Chemicals (NYSE:ICL) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Dividends

Israel Chemicals pays an annual dividend of $0.22 per share and has a dividend yield of 4.7%. CVR Partners does not pay a dividend. Israel Chemicals pays out 71.0% of its earnings in the form of a dividend.

Profitability

This table compares CVR Partners and Israel Chemicals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CVR Partners -25.08% -14.40% -6.49%
Israel Chemicals 22.15% 13.77% 4.76%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CVR Partners and Israel Chemicals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CVR Partners 0 0 1 0 3.00
Israel Chemicals 0 2 1 0 2.33

CVR Partners presently has a consensus price target of $5.00, indicating a potential upside of 69.49%. Israel Chemicals has a consensus price target of $4.88, indicating a potential upside of 4.61%. Given CVR Partners’ stronger consensus rating and higher probable upside, analysts plainly believe CVR Partners is more favorable than Israel Chemicals.

Institutional & Insider Ownership

32.5% of CVR Partners shares are held by institutional investors. Comparatively, 7.0% of Israel Chemicals shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares CVR Partners and Israel Chemicals’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CVR Partners $330.80 million 1.01 -$72.78 million ($0.64) -4.61
Israel Chemicals $5.42 billion 1.12 $364.00 million $0.31 15.03

Israel Chemicals has higher revenue and earnings than CVR Partners. CVR Partners is trading at a lower price-to-earnings ratio than Israel Chemicals, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

CVR Partners has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, Israel Chemicals has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Summary

Israel Chemicals beats CVR Partners on 9 of the 14 factors compared between the two stocks.

CVR Partners Company Profile

CVR Partners, LP produces, distributes, and markets nitrogen fertilizer products in the United States. It offers ammonia products for agricultural and industrial customers; and urea ammonium nitrate products to agricultural customers, as well as retailers and distributors. CVR GP, LLC serves as the general partner of the company. The company was founded in 2007 and is based in Sugar Land, Texas.

Israel Chemicals Company Profile

Israel Chemicals Ltd. operates as a specialty minerals company worldwide. The company operates through two segments, Essential Minerals and Specialty Solutions. The company extracts potash from the Dead Sea; mines and produces potash, salt, and Polysulphate; and produces, markets, and sells pure magnesium and magnesium alloys, as well as produces dry carnallite and related by-products, including chlorine and sylvinite. It also mines and processes phosphate rock; produces sulphuric acid, fertilizer-grade phosphoric acid, and phosphate fertilizers; manufactures phosphate-based food additives for livestock; and produces water soluble specialty fertilizers, liquid and soluble fertilizers, and controlled-release fertilizers. In addition, the company produces bromine and bromine-based compounds; various grades of potassium chloride, salt, magnesium chloride, and magnesia products; and phosphorous-based flame retardants and additional phosphorus-based products; Further, it develops, produces, markets, and sells a range of acids and specialty phosphates for various applications in metal and water treatment, paint and coating, cleaning material, oral hygiene, carbonated drinks, and asphalt modification industries; develops and produces functional food ingredients and phosphate additives, which provide texture and stability solutions for the processed meat, poultry, seafood, dairy, beverage, and baked goods markets; and produces milk and whey proteins for the food ingredients industry, as well as provides blended and integrated solutions based on dairy proteins and phosphate additives. The company sells its products through marketing companies, agents, and distributors. Israel Chemicals Ltd. was founded in 1968 and is headquartered in Tel Aviv, Israel.

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