Israel Chemicals (ICL) vs. Ciner Resources (CINR) Critical Analysis

Israel Chemicals (NYSE: ICL) and Ciner Resources (NYSE:CINR) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Earnings & Valuation

This table compares Israel Chemicals and Ciner Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Israel Chemicals $5.36 billion 1.04 -$122.00 million N/A N/A
Ciner Resources $475.20 million 1.10 $41.40 million $1.90 13.95

Ciner Resources has lower revenue, but higher earnings than Israel Chemicals.

Risk & Volatility

Israel Chemicals has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Ciner Resources has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Israel Chemicals and Ciner Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Israel Chemicals 0 2 0 0 2.00
Ciner Resources 0 2 2 0 2.50

Israel Chemicals presently has a consensus price target of $4.88, indicating a potential upside of 11.05%. Ciner Resources has a consensus price target of $25.00, indicating a potential downside of 5.66%. Given Israel Chemicals’ higher probable upside, equities research analysts plainly believe Israel Chemicals is more favorable than Ciner Resources.

Institutional and Insider Ownership

6.4% of Israel Chemicals shares are held by institutional investors. Comparatively, 9.0% of Ciner Resources shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Israel Chemicals pays an annual dividend of $0.18 per share and has a dividend yield of 4.1%. Ciner Resources pays an annual dividend of $2.27 per share and has a dividend yield of 8.6%. Ciner Resources pays out 119.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Israel Chemicals and Ciner Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Israel Chemicals 4.47% 13.20% 4.16%
Ciner Resources 7.77% 15.13% 8.95%

Summary

Ciner Resources beats Israel Chemicals on 9 of the 14 factors compared between the two stocks.

About Israel Chemicals

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.

About Ciner Resources

Ciner Resources LP, through its subsidiary, Ciner Wyoming LLC (Ciner Wyoming), produces soda ash and serves a global market from its facility in the Green River Basin of Wyoming. The Company processes trona ore into soda ash, a raw material in flat glass, container glass, detergents, chemicals, paper and other consumer and industrial products. As of December 31, 2016, its Green River Basin surface operations were situated on approximately 880 acres in Wyoming, and the Company’s mining operations included approximately 23,500 acres of leased and licensed subsurface mining area. The Company’s mining leases and license are located in two mining beds, designated by the United States Geological Survey as beds 24 and 25, at depths of 800 to 1100 feet, respectively, below the surface. The Company uses a continuous mining technique to mine trona and roof bolt the ceiling simultaneously. The Company’s soda ash is shipped by rail or truck from its Green River Basin operations.

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