Reviewing RPM International (NYSE:RPM) & Intrepid Potash (NYSE:IPI)

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

Risk and Volatility

RPM International has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Intrepid Potash has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RPM International	$7.86 billion	1.66	$661.39 million	$5.16	19.84
Intrepid Potash	$301.63 million	1.86	$11.19 million	$1.98	21.03

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

Profitability

This table compares RPM International and Intrepid Potash’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RPM International	8.41%	22.45%	8.86%
Intrepid Potash	8.94%	4.74%	3.73%

Analyst Recommendations

This is a breakdown of current ratings and price targets for RPM International and Intrepid Potash, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RPM International	0	4	10	0	2.71
Intrepid Potash	1	2	0	1	2.25

RPM International currently has a consensus price target of $126.00, suggesting a potential upside of 23.06%. Intrepid Potash has a consensus price target of $29.00, suggesting a potential downside of 30.37%. Given RPM International’s stronger consensus rating and higher possible upside, research analysts plainly believe RPM International is more favorable than Intrepid Potash.

Institutional & Insider Ownership

80.9% of RPM International shares are held by institutional investors. Comparatively, 56.1% of Intrepid Potash shares are held by institutional investors. 1.5% of RPM International shares are held by company insiders. Comparatively, 2.3% of Intrepid Potash 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.

Summary

RPM International beats Intrepid Potash on 9 of the 15 factors compared between the two stocks.

About RPM International

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.

About Intrepid Potash

Intrepid Potash, Inc., together with its subsidiaries, engages in the extraction and production of the potash in the United States and internationally. It operates through three segments: Potash, Trio, and Oilfield Solutions. The company offers muriate of potash for various markets, such as agricultural market as a fertilizer input; the industrial market as a component in drilling and fracturing fluids for oil and gas wells, as well as an input to other industrial processes; and the animal feed market as a nutrient supplement. It also provides Trio, a specialty fertilizer that delivers potassium, sulfate, and magnesium in a single particle; water for oil and gas services industry; salt for various markets, including animal feed, industrial applications, pool salt, and the treatment of roads and walkways for ice melting or to manage road conditions; magnesium chloride for use as a road treatment agent for deicing and dedusting; brines for use in oil and gas industry to support well workover and completion activities; and metal recovery salts. Intrepid Potash, Inc. was founded in 1999 and is based in Denver, Colorado.