American Vanguard Corporation (NYSE: AVD) and Intrepid Potash (NYSE:IPI) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Volatility & Risk

American Vanguard Corporation has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Intrepid Potash has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for American Vanguard Corporation and Intrepid Potash, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Vanguard Corporation 0 1 1 1 3.00
Intrepid Potash 0 1 0 0 2.00

American Vanguard Corporation currently has a consensus target price of $22.50, indicating a potential downside of 3.85%. Intrepid Potash has a consensus target price of $3.00, indicating a potential downside of 28.74%. Given American Vanguard Corporation’s stronger consensus rating and higher probable upside, equities analysts plainly believe American Vanguard Corporation is more favorable than Intrepid Potash.

Earnings and Valuation

This table compares American Vanguard Corporation and Intrepid Potash’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Vanguard Corporation $318.49 million 2.19 $44.28 million $0.50 46.80
Intrepid Potash $133.60 million 3.86 -$86,000.00 ($0.68) -6.19

American Vanguard Corporation has higher revenue and earnings than Intrepid Potash. Intrepid Potash is trading at a lower price-to-earnings ratio than American Vanguard Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

American Vanguard Corporation pays an annual dividend of $0.06 per share and has a dividend yield of 0.3%. Intrepid Potash does not pay a dividend. American Vanguard Corporation pays out 12.0% of its earnings in the form of a dividend.

Profitability

This table compares American Vanguard Corporation and Intrepid Potash’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Vanguard Corporation 4.56% 5.10% 3.34%
Intrepid Potash -30.56% -12.37% -8.86%

Insider and Institutional Ownership

76.9% of American Vanguard Corporation shares are held by institutional investors. Comparatively, 47.3% of Intrepid Potash shares are held by institutional investors. 4.7% of American Vanguard Corporation shares are held by insiders. Comparatively, 27.3% of Intrepid Potash 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

American Vanguard Corporation beats Intrepid Potash on 13 of the 16 factors compared between the two stocks.

About American Vanguard Corporation

American Vanguard Corporation operates as a holding company. The Company conducts its business through its subsidiaries, AMVAC Chemical Corporation (AMVAC), GemChem, Inc. (GemChem), 2110 Davie Corporation (DAVIE), Quimica Amvac de Mexico S.A. de C.V. (AMVAC M), AMVAC Mexico Sociedad de Responsabilidad Limitada (AMVAC M Srl), AMVAC de Costa Rica Sociedad de Responsabilidad Limitada (AMVAC CR Srl), AMVAC Switzerland GmbH (AMVAC S), AMVAC do Brasil Representacoes Ltda (AMVAC B), AMVAC C.V. (AMVAC CV), AMVAC Netherlands BV (AMVAC BV), Envance Technologies, LLC (Envance), AMVAC Singapore Pte, Ltd (AMVAC Sgpr) and Huifeng AMVAC Innovation Co. Limited (Hong Kong JV). AMVAC is a specialty chemical manufacturer that develops and markets products for agricultural, commercial and consumer uses. It manufactures and formulates chemicals, such as insecticides, fungicides, herbicides, molluscicides and soil fumigants for crops, turf and ornamental plants, and human and animal health protection.

About Intrepid Potash

Intrepid Potash, Inc. is a producer of muriate of potash (potassium chloride or potash) and langbeinite (sulfate of potash magnesia) in the United States, which it markets and sells as Trio. The Company operates in the extraction, production and sale of potassium-related products. Its products are potash and Trio. It sells potash into three markets, including the agricultural market as a fertilizer input; the industrial market as a component in drilling and fracturing fluids for oil and gas wells and an input to other industrial processes, and the animal feed market as a nutrient supplement. Trio, which it mines from langbeinite ore, is its specialty fertilizer that delivers potassium, sulfate and magnesium in a single particle and has low chloride. The Company also produces salt, magnesium chloride, metal recovery salts and brine containing salt and potassium from its mining processes. It produces potash from three solar evaporation solution mining facilities.

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