Terra Nitrogen (TNH) versus Cal-Maine Foods (CALM) Financial Review

Terra Nitrogen (NYSE: TNH) and Cal-Maine Foods (NASDAQ:CALM) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Terra Nitrogen and Cal-Maine Foods, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terra Nitrogen 0 0 0 0 N/A
Cal-Maine Foods 1 1 2 0 2.25

Cal-Maine Foods has a consensus target price of $36.50, indicating a potential downside of 19.25%. Given Cal-Maine Foods’ higher possible upside, analysts plainly believe Cal-Maine Foods is more favorable than Terra Nitrogen.

Volatility and Risk

Terra Nitrogen has a beta of -0.05, meaning that its share price is 105% less volatile than the S&P 500. Comparatively, Cal-Maine Foods has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Earnings & Valuation

This table compares Terra Nitrogen and Cal-Maine Foods’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Terra Nitrogen $397.20 million 3.89 $153.90 million $5.94 14.07
Cal-Maine Foods $1.07 billion 2.04 -$74.27 million ($1.29) -35.04

Terra Nitrogen has higher earnings, but lower revenue than Cal-Maine Foods. Cal-Maine Foods is trading at a lower price-to-earnings ratio than Terra Nitrogen, indicating that it is currently the more affordable of the two stocks.


Terra Nitrogen pays an annual dividend of $8.12 per share and has a dividend yield of 9.7%. Cal-Maine Foods does not pay a dividend. Terra Nitrogen pays out 136.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.


This table compares Terra Nitrogen and Cal-Maine Foods’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Terra Nitrogen 38.75% 41.57% 38.41%
Cal-Maine Foods -5.18% -1.15% -0.92%

Institutional & Insider Ownership

3.5% of Terra Nitrogen shares are held by institutional investors. Comparatively, 60.5% of Cal-Maine Foods shares are held by institutional investors. 2.0% of Terra Nitrogen shares are held by company insiders. Comparatively, 33.2% of Cal-Maine Foods shares 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.

About Terra Nitrogen

Terra Nitrogen Company, L.P. (TNCLP) is a limited partnership that produces nitrogen fertilizer products. The Company’s principal products are anhydrous ammonia (ammonia) and urea ammonium nitrate solutions (UAN), which it manufactures at its facility in Verdigris, Oklahoma. Its nitrogen products are used primarily by farmers. For the year ended December 31, 2016, it had sold 2.2 million tons of nitrogen fertilizers. The Company has production facility, in Verdigris, Oklahoma. As of December 31, 2016, it had two ammonia plants, two nitric acid plants and two UAN plants. The Company conducts its operations through an operating partnership, Terra Nitrogen, Limited Partnership (TNLP). Terra Nitrogen GP Inc. is the general partner of both TNCLP and TNLP and owns a 0.025% general partner interest in each of TNCLP and TNLP. The General Partner is an indirect subsidiary of CF Industries Holdings, Inc., which is engaged in the manufacturing and distribution of nitrogen products.

About Cal-Maine Foods

Cal-Maine Foods, Inc. is a producer and marketer of shell eggs in the United States. The Company operates through the segment of production, grading, packaging, marketing and distribution of shell eggs. It offers shell eggs, including specialty and non-specialty eggs. It classifies cage free, organic and brown eggs as specialty products. It classifies all other shell eggs as non-specialty products. The Company markets its specialty shell eggs under the brands, including Egg-Land’s Best, Land O’ Lakes, Farmhouse and 4-Grain. The Company, through Egg-Land’s Best, Inc. (EB), produces, markets and distributes Egg-Land’s Best and Land O’ Lakes branded eggs. It markets cage-free eggs under its Farmhouse brand and distributes them throughout southeast and southwest regions of the United States. It markets organic, wholesome, cage-free, vegetarian and omega-3 eggs under its 4-Grain brand. It also produces, markets and distributes private label specialty shell eggs to customers.

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