Comparing Kronos Worldwide (NYSE:KRO) & Intrepid Potash (NYSE:IPI)

Intrepid Potash (NYSE:IPI) and Kronos Worldwide (NYSE:KRO) are both small-cap materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Earnings and Valuation

This table compares Intrepid Potash and Kronos Worldwide”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intrepid Potash	$298.33 million	1.82	$11.19 million	$1.98	20.35
Kronos Worldwide	$1.86 billion	0.50	-$110.90 million	($0.95)	-8.53

Intrepid Potash has higher earnings, but lower revenue than Kronos Worldwide. Kronos Worldwide is trading at a lower price-to-earnings ratio than Intrepid Potash, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

56.1% of Intrepid Potash shares are held by institutional investors. Comparatively, 15.1% of Kronos Worldwide shares are held by institutional investors. 2.3% of Intrepid Potash shares are held by insiders. Comparatively, 0.2% of Kronos Worldwide shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Intrepid Potash and Kronos Worldwide’s 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%
Kronos Worldwide	-5.63%	-12.28%	-5.16%

Risk & Volatility

Intrepid Potash has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Kronos Worldwide has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Intrepid Potash and Kronos Worldwide, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intrepid Potash	1	1	0	2	2.75
Kronos Worldwide	2	1	1	0	1.75

Intrepid Potash currently has a consensus target price of $29.00, indicating a potential downside of 28.03%. Kronos Worldwide has a consensus target price of $8.50, indicating a potential upside of 4.91%. Given Kronos Worldwide’s higher possible upside, analysts plainly believe Kronos Worldwide is more favorable than Intrepid Potash.

Summary

Intrepid Potash beats Kronos Worldwide on 12 of the 15 factors compared between the two stocks.

About Intrepid Potash

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.

About Kronos Worldwide

Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally. The company produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for various products, including paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, foods, and cosmetics. It also produces ilmenite, a raw material used directly as a feedstock by sulfate-process TiO2 plants; iron-based chemicals, which are used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as in the manufacture of iron pigments, cement, and agricultural products; specialty chemicals for use in the formulation of pearlescent pigments, and production of electroceramic capacitors for cell phones and other electronic devices, as well as for use in natural gas pipe, and other specialty applications. In addition, the company provides technical services for its products. It sells its products under the KRONOS brand through agents and distributors to paint, plastics, decorative laminate, and paper manufacturers. The company was founded in 1916 and is headquartered in Dallas, Texas. Kronos Worldwide, Inc. is a subsidiary of Valhi, Inc.