Intrepid Potash (IPI) vs. Its Rivals Financial Review

Intrepid Potash (NYSE:IPI) is one of 295 public companies in the “Chemicals” industry, but how does it weigh in compared to its peers? We will compare Intrepid Potash to similar companies based on the strength of its analyst recommendations, risk, valuation, earnings, institutional ownership, profitability and dividends.

Risk and Volatility

Intrepid Potash has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, Intrepid Potash’s peers have a beta of 0.92, suggesting that their average share price is 8% less volatile than the S&P 500.

Insider & Institutional Ownership

56.1% of Intrepid Potash shares are held by institutional investors. Comparatively, 47.4% of shares of all “Chemicals” companies are held by institutional investors. 2.3% of Intrepid Potash shares are held by company insiders. Comparatively, 13.7% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Intrepid Potash and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Intrepid Potash	$298.33 million	$11.19 million	17.96
Intrepid Potash Competitors	$6.35 billion	$222.31 million	-0.87

Intrepid Potash’s peers have higher revenue and earnings than Intrepid Potash. Intrepid Potash is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Intrepid Potash and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intrepid Potash	1	1	2	1	2.60
Intrepid Potash Competitors	3248	12209	14130	519	2.40

Intrepid Potash currently has a consensus target price of $36.67, indicating a potential upside of 11.59%. As a group, “Chemicals” companies have a potential upside of 8.89%. Given Intrepid Potash’s stronger consensus rating and higher possible upside, equities analysts plainly believe Intrepid Potash is more favorable than its peers.

Profitability

This table compares Intrepid Potash and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intrepid Potash	8.94%	4.74%	3.73%
Intrepid Potash Competitors	-61.35%	1.23%	-1.42%

Summary

Intrepid Potash beats its peers on 9 of the 13 factors compared.

Intrepid Potash Company Profile

Intrepid Potash, Inc., together with its subsidiaries, engages in the extraction and production of the potash in the United States and internationally. It operates through three segments: Potash, Trio, and Oilfield Solutions. The company offers muriate of potash for various markets, such as agricultural market as a fertilizer input; the industrial market as a component in drilling and fracturing fluids for oil and gas wells, as well as an input to other industrial processes; and the animal feed market as a nutrient supplement. It also provides Trio, a specialty fertilizer that delivers potassium, sulfate, and magnesium in a single particle; water for oil and gas services industry; salt for various markets, including animal feed, industrial applications, pool salt, and the treatment of roads and walkways for ice melting or to manage road conditions; magnesium chloride for use as a road treatment agent for deicing and dedusting; brines for use in oil and gas industry to support well workover and completion activities; and metal recovery salts. Intrepid Potash, Inc. was founded in 1999 and is based in Denver, Colorado.