Analyzing United States Lime & Minerals (USLM) and Compass Minerals (CMP)

United States Lime & Minerals (NASDAQ: USLM) and Compass Minerals (NYSE:CMP) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation & Earnings

How to Become a New Pot Stock Millionaire

This table compares United States Lime & Minerals and Compass Minerals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United States Lime & Minerals $144.84 million 2.83 $27.14 million N/A N/A
Compass Minerals $1.36 billion 1.55 $42.70 million $2.75 22.69

Compass Minerals has higher revenue and earnings than United States Lime & Minerals.

Profitability

This table compares United States Lime & Minerals and Compass Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United States Lime & Minerals 18.74% 10.23% 8.94%
Compass Minerals 3.13% 13.02% 3.87%

Volatility & Risk

United States Lime & Minerals has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Compass Minerals has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for United States Lime & Minerals and Compass Minerals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United States Lime & Minerals 0 0 0 0 N/A
Compass Minerals 1 1 4 0 2.50

Compass Minerals has a consensus target price of $71.50, suggesting a potential upside of 14.58%. Given Compass Minerals’ higher probable upside, analysts plainly believe Compass Minerals is more favorable than United States Lime & Minerals.

Dividends

United States Lime & Minerals pays an annual dividend of $0.54 per share and has a dividend yield of 0.7%. Compass Minerals pays an annual dividend of $2.88 per share and has a dividend yield of 4.6%. Compass Minerals pays out 104.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Compass Minerals has raised its dividend for 14 consecutive years. Compass Minerals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

26.4% of United States Lime & Minerals shares are held by institutional investors. 2.6% of United States Lime & Minerals shares are held by company insiders. Comparatively, 0.8% of Compass Minerals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Compass Minerals beats United States Lime & Minerals on 8 of the 15 factors compared between the two stocks.

United States Lime & Minerals Company Profile

United States Lime & Minerals, Inc. manufactures and supplies lime and limestone products in the United States. It operates through two segments, Lime and Limestone Operations, and Natural Gas Interests. The Lime and Limestone Operations segment extracts limestone from open-pit quarries and an underground mine, and processes it as pulverized limestone, quicklime, hydrated lime, and lime slurry. This segment supplies its products primarily to the construction customers, including highway, road, and building contractors; industrial customers, such as paper and glass manufacturers; environmental customers comprising municipal sanitation and water treatment facilities, and flue gas treatment processes; steel producers; oil and gas services companies; roof shingle manufacturers; and poultry and cattle feed producers. The Natural Gas Interests segment has various royalty interests and non-operating working interests with respect to oil and gas rights on approximately 3,800 acres of land located in Johnson County, Texas in the Barnett Shale Formation. The company was founded in 1948 and is headquartered in Dallas, Texas. United States Lime & Minerals, Inc. is a subsidiary of Inberdon Enterprises Ltd.

Compass Minerals Company Profile

Compass Minerals International, Inc., produces and sells salt, and specialty plant nutrition and chemical products primarily in the United States, Canada, Brazil, and the United Kingdom. It operates in three segments: Salt, Plant Nutrition North America, and Plant Nutrition South America. The Salt segment offers sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with salt to produce specialty products. This segment provides products for use as a deicer for roadways, consumer, and professional use; as an ingredient in chemical production; for water treatment, human, and animal nutrition; and for various other consumer and industrial uses, as well as provides records management services. The Plant Nutrition North America segment offers sulfate of potash specialty fertilizers in various grades, including agricultural products used in broadcast spreaders, direct application, and liquid fertilizer solutions; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products under the Protassium+ brand; and micronutrient products under the Wolf Trax brand, as well as specialty plant nutrition solution-based products and chemical solutions. This segment provides its products to distributors and retailers of crop inputs, as well as growers. The Plant Nutrition South America segment offers various specialty plant nutrients and supplements; water and wastewater treatment chemicals for cleaning, decontaminating, and purifying water; and process chemicals for industrial use. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003. Compass Minerals International, Inc. was founded in 1993 and is headquartered in Overland Park, Kansas.

Receive News & Ratings for United States Lime & Minerals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United States Lime & Minerals and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply