CF Industries Holdings (NYSE: CF) and Rentech Nitrogen Partners (NYSE:RNF) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitabiliy, dividends, risk and analyst recommendations.

Profitability

This table compares CF Industries Holdings and Rentech Nitrogen Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CF Industries Holdings -9.98% -0.40% -0.17%
Rentech Nitrogen Partners -24.24% N/A -28.26%

Dividends

CF Industries Holdings pays an annual dividend of $1.20 per share and has a dividend yield of 3.8%. Rentech Nitrogen Partners does not pay a dividend. CF Industries Holdings pays out -75.5% of its earnings in the form of a dividend. CF Industries Holdings has increased its dividend for 4 consecutive years and Rentech Nitrogen Partners has increased its dividend for 2 consecutive years.

Valuation & Earnings

This table compares CF Industries Holdings and Rentech Nitrogen Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CF Industries Holdings $3.71 billion 1.98 $978.00 million ($1.59) -19.80
Rentech Nitrogen Partners N/A N/A N/A N/A N/A

CF Industries Holdings has higher revenue and earnings than Rentech Nitrogen Partners.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CF Industries Holdings and Rentech Nitrogen Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CF Industries Holdings 2 5 4 0 2.18
Rentech Nitrogen Partners 0 0 0 0 N/A

CF Industries Holdings presently has a consensus price target of $31.33, indicating a potential downside of 0.50%. Given CF Industries Holdings’ higher possible upside, analysts clearly believe CF Industries Holdings is more favorable than Rentech Nitrogen Partners.

Summary

CF Industries Holdings beats Rentech Nitrogen Partners on 8 of the 9 factors compared between the two stocks.

CF Industries Holdings Company Profile

CF Industries Holdings, Inc. manufactures and distributes nitrogen fertilizer, and other nitrogen products. The Company’s nitrogen fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). Its other nitrogen products include diesel exhaust fluid (DEF), urea liquor, nitric acid and aqua ammonia, which are sold primarily to the Company’s industrial customers, and compound fertilizer products (nitrogen, phosphorus and potassium or NPKs). The Company’s segments include ammonia, granular urea, UAN, AN and other. The Company’s ammonia segment produces anhydrous ammonia (ammonia), which is concentrated nitrogen fertilizer as it contains 82% nitrogen. The granular urea segment produces granular urea, which contains 46% nitrogen. The UAN segment produces urea ammonium nitrate solution. The Other segment includes DEF, urea liquor, nitric acid and NPKs. The Company’s primary nitrogen fertilizer products are ammonia, granular urea, UAN and AN.

Rentech Nitrogen Partners Company Profile

East Dubuque Nitrogen Partners, L.P., formerly Rentech Nitrogen Partners, L.P., is a master limited partnership that owns and operates a fertilizer business. The Company operates through two business segments: East Dubuque and Pasadena. The Company owns and operates the East Dubuque Facility and its Pasadena Facility. The East Dubuque Facility produces ammonia, urea ammonium nitrate (UAN), liquid and granular urea, nitric acid and food-grade carbon dioxide, using natural gas as its primary feedstock. The East Dubuque Facility is located on approximately 210 acres in the northwest corner of Illinois on a 140-foot bluff above the Upper Mississippi River. The Pasadena Facility produces synthetic ammonium sulfate and ammonium sulfate. The Pasadena Facility also produces sulfuric acid and ammonium thiosulfate. The Pasadena Facility’s products are applied to various crops, including soybeans, potatoes, cotton, canola, alfalfa, corn and wheat.

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