Analyzing Methanex (NASDAQ:MEOH) & Intrepid Potash (NYSE:IPI)

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

Earnings and Valuation

This table compares Methanex and Intrepid Potash”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Methanex	$3.59 billion	1.25	$79.88 million	$1.03	56.13
Intrepid Potash	$298.33 million	1.68	$11.19 million	$1.98	18.78

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

Institutional and Insider Ownership

73.5% of Methanex shares are held by institutional investors. Comparatively, 56.1% of Intrepid Potash shares are held by institutional investors. 1.0% of Methanex shares are held by insiders. Comparatively, 2.3% of Intrepid Potash shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Methanex and Intrepid Potash, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Methanex	0	5	6	0	2.55
Intrepid Potash	1	1	0	2	2.75

Methanex currently has a consensus price target of $68.56, indicating a potential upside of 18.59%. Intrepid Potash has a consensus price target of $29.00, indicating a potential downside of 21.99%. Given Methanex’s higher possible upside, research analysts plainly believe Methanex is more favorable than Intrepid Potash.

Volatility & Risk

Methanex has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Intrepid Potash has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Methanex	2.07%	11.35%	4.34%
Intrepid Potash	8.94%	4.74%	3.73%

Summary

Methanex beats Intrepid Potash on 8 of the 15 factors compared between the two stocks.

About Methanex

Methanex Corporation produces and supplies methanol in China, Europe, the United States, South America, South Korea, Canada, and Asia. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities. The company owns and manages a fleet of approximately 30 ocean-going vessels. It serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.

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.