Potash Corporation of Saskatchewan (POT) and Israel Chemicals Shs (ICL) Head-To-Head Review
Potash Corporation of Saskatchewan (NYSE: POT) and Israel Chemicals Shs (NYSE:ICL) are both mid-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.
Potash Corporation of Saskatchewan pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Israel Chemicals Shs pays an annual dividend of $0.10 per share and has a dividend yield of 2.3%. Potash Corporation of Saskatchewan pays out 67.8% of its earnings in the form of a dividend. Israel Chemicals Shs pays out -66.7% 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. Israel Chemicals Shs is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Potash Corporation of Saskatchewan and Israel Chemicals Shs’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Potash Corporation of Saskatchewan||$3.89 billion||4.11||$1.25 billion||$0.59||32.24|
|Israel Chemicals Shs||$5.34 billion||1.06||$924.80 million||($0.15)||-29.46|
Potash Corporation of Saskatchewan has higher revenue, but lower earnings than Israel Chemicals Shs. Israel Chemicals Shs is trading at a lower price-to-earnings ratio than Potash Corporation of Saskatchewan, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
57.0% of Potash Corporation of Saskatchewan shares are owned by institutional investors. Comparatively, 5.9% of Israel Chemicals Shs shares are owned by institutional investors. 3.1% of Potash Corporation of Saskatchewan shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Potash Corporation of Saskatchewan and Israel Chemicals Shs, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Potash Corporation of Saskatchewan||1||6||7||0||2.43|
|Israel Chemicals Shs||0||2||0||0||2.00|
Potash Corporation of Saskatchewan presently has a consensus target price of $19.02, suggesting a potential downside of 0.00%. Israel Chemicals Shs has a consensus target price of $4.88, suggesting a potential upside of 10.29%. Given Israel Chemicals Shs’ higher possible upside, analysts clearly believe Israel Chemicals Shs is more favorable than Potash Corporation of Saskatchewan.
This table compares Potash Corporation of Saskatchewan and Israel Chemicals Shs’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Potash Corporation of Saskatchewan||11.07%||5.19%||2.48%|
|Israel Chemicals Shs||-3.43%||13.55%||4.20%|
Risk & Volatility
Potash Corporation of Saskatchewan has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Israel Chemicals Shs has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
Potash Corporation of Saskatchewan beats Israel Chemicals Shs on 8 of the 15 factors compared between the two stocks.
About Potash Corporation of Saskatchewan
Potash Corporation of Saskatchewan Inc. (PCS) is a fertilizer producer producing a range of primary crop nutrients, such as potash, nitrogen and phosphate. The Company operates through three segments: potash, nitrogen and phosphate. As of December 31, 2016, it owned and operated five potash operations in Saskatchewan and owned one in New Brunswick. Its nitrogen operations involve the production of nitrogen fertilizers and nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate and nitric acid. It has nitrogen facilities in Georgia, Louisiana, Ohio and Trinidad. Its phosphate operations include the manufacture and sale of solid and liquid phosphate fertilizers, phosphate feed and industrial acid, which is used in food products and industrial processes. It has phosphate mines and mineral processing plant complexes in Florida and North Carolina. As of December 31, 2016, the Company had four phosphate feed plants in the United States.
About Israel Chemicals Shs
Israel Chemicals Ltd. operates as a specialty minerals company worldwide. The company operates through two segments, Essential Minerals and Specialty Solutions. The company extracts potash from the Dead Sea; mines and produces potash and salt from subterranean mines in Spain and the United Kingdom, as well as uses part of the potash to produce compound fertilizers; mines and processes phosphate rock in open mines; and produces sulfuric acid, agricultural phosphoric acid, phosphate fertilizers, compound fertilizers, liquid fertilizers, and soluble fertilizers. It also manufactures compound fertilizers in the Netherlands, Germany, and Belgium; liquid fertilizers and soluble fertilizers in Spain; slow release and controlled release fertilizers in the Netherlands and the United States; and phosphate-based food additives for livestock in Turkey and Israel. In addition, the company produces bromine out of a solution that is created as a by-product of the potash production process in Sodom, as well as bromine-based products; chlorine-based products in Israel and the United States; and flame retardants and phosphorus based products, as well as extracts salt, magnesia, and chlorine from Dead Sea brine. Further, it purchases clean phosphoric acid and manufactures thermal phosphoric acids, which are used to manufacture downstream products and phosphate salts that are used as a raw material for manufacturing, food additives, hygiene products and flame retardants, and fire extinguishment products. It also manufactures phosphorous derivatives based on phosphorous; specialty products based on aluminum acids; and other raw materials. The company sells its products through marketing companies, agents, and distributors. Israel Chemicals Ltd. was founded in 1968 and is headquartered in Tel Aviv, Israel.
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