Analyzing Lundin Mining (OTCMKTS:LUNMF) & Compass Minerals International (NYSE:CMP)

Compass Minerals International (NYSE:CMP) and Lundin Mining (OTCMKTS:LUNMF) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, earnings, institutional ownership, profitability and dividends.

Analyst Ratings

This is a breakdown of current recommendations for Compass Minerals International and Lundin Mining, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Minerals International	2	2	1	0	1.80
Lundin Mining	0	8	4	0	2.33

Compass Minerals International presently has a consensus target price of $27.00, indicating a potential upside of 18.16%. Given Compass Minerals International’s higher probable upside, research analysts clearly believe Compass Minerals International is more favorable than Lundin Mining.

Earnings & Valuation

This table compares Compass Minerals International and Lundin Mining”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Minerals International	$1.24 billion	0.77	-$79.80 million	$0.43	53.14
Lundin Mining	$4.05 billion	5.18	$1.28 billion	$1.73	14.26

Lundin Mining has higher revenue and earnings than Compass Minerals International. Lundin Mining is trading at a lower price-to-earnings ratio than Compass Minerals International, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

99.8% of Compass Minerals International shares are held by institutional investors. Comparatively, 0.1% of Lundin Mining shares are held by institutional investors. 1.0% of Compass Minerals International shares are held by company insiders. Comparatively, 0.4% of Lundin Mining shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Compass Minerals International has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Lundin Mining has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Profitability

This table compares Compass Minerals International and Lundin Mining’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compass Minerals International	1.42%	12.75%	2.28%
Lundin Mining	31.82%	13.18%	9.73%

Summary

Lundin Mining beats Compass Minerals International on 10 of the 14 factors compared between the two stocks.

About Compass Minerals International

Compass Minerals International, Inc., provides essential minerals in the United States, Canada, the United Kingdom, and internationally. It operates through two segments, Salt and Plant Nutrition. The Salt segment produces, markets, and sells sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products. This segment provides products for use as a deicer for roadways, consumer, and professional use; as an ingredient in chemical production; for water treatment, human, and animal nutrition; and for various other consumer and industrial uses, as well as records management services. The Plant Nutrition segment produces sulfate of potash specialty fertilizers in various grades that are used in broadcast spreaders, direct application, and liquid fertilizer solutions under the Protassium+ brand name; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products; and develops and produces a portfolio of magnesium chloride-based aerial and ground fire retardant products. This segment provides its products to distributors and retailers of crop inputs, as well as growers. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003. Compass Minerals International, Inc. was founded in 1844 and is headquartered in Overland Park, Kansas.

About Lundin Mining

Lundin Mining Corporation, a diversified base metals mining company, engages in the exploration, development, and mining of mineral properties in Chile, Brazil, the United States, Portugal, Sweden, and Argentina. It primarily produces copper, zinc, gold, nickel, and molybdenum, as well as lead, silver, and other metals. The company holds 100% interests in the Chapada mine located in Brazil; the Eagle mine located in the United States; the Neves-Corvo mine located in Portugal; and the Zinkgruvan mine located in Sweden. It also holds 80% interests in the Candelaria and Ojos del Salado mining complex; and 51% interest in the Caserones copper-molybdenum mine located in Chile, as well as owns the copper gold Josemaria project located in Argentina. The company was formerly known as South Atlantic Ventures Ltd. and changed its name to Lundin Mining Corporation in August 2004. Lundin Mining Corporation was incorporated in 1994 and is headquartered in Vancouver, Canada.