CVR Partners, (NYSE: UAN) and CF Industries Holdings (NYSE:CF) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitabiliy, analyst recommendations, earnings and dividends.

Valuation & Earnings

This table compares CVR Partners, and CF Industries Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CVR Partners, $368.51 million 1.23 $81.38 million ($0.49) -8.16
CF Industries Holdings $3.72 billion 1.95 $1.20 billion ($1.40) -22.24

CF Industries Holdings has higher revenue and earnings than CVR Partners,. CF Industries Holdings is trading at a lower price-to-earnings ratio than CVR Partners,, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

CVR Partners, has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, CF Industries Holdings has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CVR Partners, and CF Industries Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CVR Partners, 0 1 1 0 2.50
CF Industries Holdings 2 5 5 0 2.25

CVR Partners, currently has a consensus target price of $5.50, indicating a potential upside of 37.50%. CF Industries Holdings has a consensus target price of $30.09, indicating a potential downside of 3.37%. Given CVR Partners,’s stronger consensus rating and higher probable upside, equities research analysts clearly believe CVR Partners, is more favorable than CF Industries Holdings.

Profitability

This table compares CVR Partners, and CF Industries Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CVR Partners, -14.98% -5.85% -2.80%
CF Industries Holdings -8.77% 0.41% 0.18%

Dividends

CVR Partners, pays an annual dividend of $0.08 per share and has a dividend yield of 2.0%. CF Industries Holdings pays an annual dividend of $1.20 per share and has a dividend yield of 3.9%. CVR Partners, pays out -16.3% of its earnings in the form of a dividend. CF Industries Holdings pays out -85.7% 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 4 consecutive years. CF Industries Holdings is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

22.5% of CVR Partners, shares are held by institutional investors. 1.0% of CF Industries Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

CF Industries Holdings beats CVR Partners, on 10 of the 16 factors compared between the two stocks.

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.

CF Industries Holdings Company Profile

CF Industries Holdings, Inc. manufactures and distributes nitrogen fertilizer, and other nitrogen products. The Company’s nitrogen fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). Its other nitrogen products include diesel exhaust fluid (DEF), urea liquor, nitric acid and aqua ammonia, which are sold primarily to the Company’s industrial customers, and compound fertilizer products (nitrogen, phosphorus and potassium or NPKs). The Company’s segments include ammonia, granular urea, UAN, AN and other. The Company’s ammonia segment produces anhydrous ammonia (ammonia), which is concentrated nitrogen fertilizer as it contains 82% nitrogen. The granular urea segment produces granular urea, which contains 46% nitrogen. The UAN segment produces urea ammonium nitrate solution. The Other segment includes DEF, urea liquor, nitric acid and NPKs. The Company’s primary nitrogen fertilizer products are ammonia, granular urea, UAN and AN.

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