Head-To-Head Analysis: Intrepid Potash (NYSE:IPI) vs. Solstice Advanced Mat (NASDAQ:SOLS)

Intrepid Potash (NYSE:IPI) and Solstice Advanced Mat (NASDAQ:SOLS) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.

Insider & Institutional Ownership

56.1% of Intrepid Potash shares are held by institutional investors. 2.3% of Intrepid Potash shares are held by company insiders. Comparatively, 0.1% of Solstice Advanced Mat shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Intrepid Potash and Solstice Advanced Mat, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intrepid Potash	1	1	2	1	2.60
Solstice Advanced Mat	0	4	8	1	2.77

Intrepid Potash presently has a consensus price target of $36.67, suggesting a potential upside of 11.33%. Solstice Advanced Mat has a consensus price target of $77.30, suggesting a potential upside of 16.91%. Given Solstice Advanced Mat’s stronger consensus rating and higher possible upside, analysts clearly believe Solstice Advanced Mat is more favorable than Intrepid Potash.

Earnings & Valuation

This table compares Intrepid Potash and Solstice Advanced Mat”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intrepid Potash	$298.33 million	1.47	$11.19 million	$1.83	18.00
Solstice Advanced Mat	$3.89 billion	2.67	$237.00 million	$2.04	32.41

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

Profitability

This table compares Intrepid Potash and Solstice Advanced Mat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Intrepid Potash	8.31%	4.74%	3.72%
Solstice Advanced Mat	7.79%	27.15%	6.97%

Summary

Solstice Advanced Mat beats Intrepid Potash on 10 of the 13 factors compared between the two stocks.

About Intrepid Potash

Intrepid Potash, Inc. is a U.S.-based mineral producer specializing in potash and specialty fertilizers. The company is the only U.S. producer of muriate of potash, also known as potassium chloride, which is used in agriculture, animal feed and industrial applications. Intrepid also produces Trio®, a specialty fertilizer containing potassium, magnesium and sulfate that supports crop growth and soil nutrient management. The company operates potash production facilities in Carlsbad, New Mexico, and Moab and Wendover, Utah.

About Solstice Advanced Mat

Solstice Advanced Materials is a specialty materials company that develops and manufactures products for industrial and commercial customers. Its offerings include refrigerants and foam-blowing agents, materials used in semiconductor and electronics manufacturing, healthcare packaging films, and other performance materials. The company was established as a spin-off of Honeywell’s Advanced Materials business, bringing together product lines and technologies developed within Honeywell and its predecessor businesses.