Mosaic (MOS) vs. China Green Agriculture (CGA) Critical Survey

Mosaic (NYSE:MOS) and China Green Agriculture (NYSE:CGA) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Profitability

This table compares Mosaic and China Green Agriculture’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mosaic -0.80% 6.17% 3.20%
China Green Agriculture -1.06% -0.73% -0.62%

Volatility & Risk

Mosaic has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, China Green Agriculture has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Earnings & Valuation

This table compares Mosaic and China Green Agriculture’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mosaic $7.41 billion 1.80 -$107.20 million $1.09 31.70
China Green Agriculture $287.05 million 0.09 -$6.93 million N/A N/A

China Green Agriculture has lower revenue, but higher earnings than Mosaic.

Insider & Institutional Ownership

75.7% of Mosaic shares are held by institutional investors. Comparatively, 4.1% of China Green Agriculture shares are held by institutional investors. 0.5% of Mosaic shares are held by insiders. Comparatively, 30.3% of China Green Agriculture shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Mosaic pays an annual dividend of $0.10 per share and has a dividend yield of 0.3%. China Green Agriculture does not pay a dividend. Mosaic pays out 9.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Mosaic and China Green Agriculture, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mosaic 1 7 8 0 2.44
China Green Agriculture 0 0 0 0 N/A

Mosaic presently has a consensus target price of $35.69, indicating a potential upside of 3.31%. Given Mosaic’s higher probable upside, equities analysts plainly believe Mosaic is more favorable than China Green Agriculture.

Summary

Mosaic beats China Green Agriculture on 11 of the 14 factors compared between the two stocks.

About Mosaic

The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients worldwide. The company operates through three segments: Phosphates, Potash, and International Distribution. It owns and operates mines, which produce concentrated phosphate crop nutrients, such as diammonium phosphate, monoammonium phosphate, and ammoniated phosphate products; and phosphate-based animal feed ingredients primarily under the Biofos and Nexfos brand names. The company also produces and sells potash for use in the manufacturing of mixed crop nutrients and animal feed ingredients, and for industrial use; and for use in the de-icing and as a water softener regenerant, as well as fluorosilicic acid for water fluoridation. In addition, it provides nitrogen-based crop nutrients and animal feed ingredients, and other ancillary services; and purchases and sells phosphates, potash, and nitrogen products. The company sells its products to wholesale distributors, retail chains, cooperatives, independent retailers, and national accounts. The Mosaic Company was founded in 2004 and is headquartered in Plymouth, Minnesota.

About China Green Agriculture

China Green Agriculture, Inc., through its subsidiaries, engages in the research, development, production, and sale of various types of fertilizers and agricultural products. The company operates in three segments: Jinong, Gufeng, and Yuxing. Its fertilizer products include humic acid-based compound fertilizers, compound fertilizers, blended fertilizers, organic compound fertilizers, slow-release fertilizers, water-soluble fertilizers, and mixed organic-inorganic compound fertilizers. The company markets its fertilizer products to private wholesalers and retailers of agricultural farm products. It also develops, produces, and sells fruits, vegetables, flowers, and colored seedlings. The company sells its decorative flowers to end-users, such as flower shops, luxury hotels, and government agencies; fruits and vegetables to supermarkets and upscale restaurants; and seedlings to city planning departments. As of June 30, 2017, it operated a network of 1,947 regional distributors covering 22 provinces, 4 autonomous regions, and 4 central government-controlled municipalities in China. The company also exports its products through contracted distributors to India and Africa. China Green Agriculture, Inc. is based in Xi'an, the People's Republic of China.

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