Comparing Monsanto Company (MON) and CVR Partners, (UAN)
Monsanto Company (NYSE: MON) and CVR Partners, (NYSE:UAN) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitabiliy, dividends, risk and earnings.
Risk & Volatility
Monsanto Company has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, CVR Partners, has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.
Insider & Institutional Ownership
75.6% of Monsanto Company shares are owned by institutional investors. Comparatively, 22.5% of CVR Partners, shares are owned by institutional investors. 0.8% of Monsanto Company shares are owned 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.
Valuation & Earnings
This table compares Monsanto Company and CVR Partners,’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Monsanto Company||$14.47 billion||3.57||$4.26 billion||$4.35||27.10|
|CVR Partners,||$368.51 million||1.20||$81.38 million||($0.49)||-7.98|
Monsanto Company has higher revenue and earnings than CVR Partners,. CVR Partners, is trading at a lower price-to-earnings ratio than Monsanto Company, indicating that it is currently the more affordable of the two stocks.
Monsanto Company pays an annual dividend of $2.16 per share and has a dividend yield of 1.8%. CVR Partners, pays an annual dividend of $0.08 per share and has a dividend yield of 2.0%. Monsanto Company pays out 49.7% of its earnings in the form of a dividend. CVR Partners, pays out -16.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CVR Partners, has raised its dividend for 7 consecutive years. CVR Partners, is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Monsanto Company and CVR Partners,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Monsanto Company and CVR Partners,, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Monsanto Company currently has a consensus price target of $121.67, suggesting a potential upside of 3.21%. CVR Partners, has a consensus price target of $6.00, suggesting a potential upside of 53.45%. Given CVR Partners,’s stronger consensus rating and higher probable upside, analysts plainly believe CVR Partners, is more favorable than Monsanto Company.
Monsanto Company beats CVR Partners, on 10 of the 16 factors compared between the two stocks.
Monsanto Company Company Profile
Monsanto Company (Monsanto), along with its subsidiaries, is a provider of agricultural products for farmers. The Company provides seeds, biotechnology trait products, herbicides and digital agriculture tools to farmers. The Company operates through two segments: Seeds and Genomics, and Agricultural Productivity. Through its Seeds and Genomics segment, the Company produces seed brands, including DEKALB, Asgrow, Deltapine, Seminis and De Ruiter, and it develops biotechnology traits that assist farmers in controlling insects and weeds and digital agriculture to assist farmers in decision-making. The Seeds and Genomics segment offers products, such as Germplasm and Biotechnology traits. Through its Agricultural Productivity segment, the Company manufactures Roundup brand herbicides and other herbicides and provides lawn-and-garden herbicide products for the residential market.
CVR Partners, Company Profile
CVR Partners, LP is a limited partnership formed by CVR Energy, Inc. (CVR Energy) to own, operate and grow its nitrogen fertilizer business. The Company produces and distributes nitrogen fertilizer products, which are used by farmers to manage the yield and quality of their crops. As of December 31, 2016, the Company produced its nitrogen fertilizer products at two manufacturing facilities, located in Coffeyville, Kansas and East Dubuque, Illinois. As of December 31, 2016, the Company’s Coffeyville Facility included a 1,300 ton-per-day capacity ammonia unit, a 3,000 ton-per-day capacity urea-ammonium nitrate (UAN) unit, and a gasifier complex having a capacity of 89 million standard cubic feet per day of hydrogen. The gasifier is a dual-train facility, with each gasifier able to function independently of the other. The Coffeyville Facility utilizes a petroleum coke, or pet coke, gasification process to produce nitrogen fertilizer.
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