Mosaic (NYSE:MOS – Get Free Report) and Rayonier Advanced Materials (NYSE:RYAM – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, earnings, profitability and risk.
Volatility and Risk
Mosaic has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Rayonier Advanced Materials has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations for Mosaic and Rayonier Advanced Materials, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mosaic | 3 | 13 | 6 | 0 | 2.14 |
| Rayonier Advanced Materials | 1 | 1 | 1 | 0 | 2.00 |
Mosaic presently has a consensus price target of $26.28, suggesting a potential upside of 42.88%. Rayonier Advanced Materials has a consensus price target of $13.00, suggesting a potential upside of 96.97%. Given Rayonier Advanced Materials’ higher probable upside, analysts clearly believe Rayonier Advanced Materials is more favorable than Mosaic.
Earnings & Valuation
This table compares Mosaic and Rayonier Advanced Materials”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mosaic | $12.05 billion | 0.49 | $540.70 million | ($2.02) | -9.10 |
| Rayonier Advanced Materials | $1.47 billion | 0.30 | -$420.67 million | ($2.10) | -3.14 |
Mosaic has higher revenue and earnings than Rayonier Advanced Materials. Mosaic is trading at a lower price-to-earnings ratio than Rayonier Advanced Materials, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Mosaic and Rayonier Advanced Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mosaic | -5.21% | 3.77% | 1.87% |
| Rayonier Advanced Materials | -9.53% | -46.19% | -7.28% |
Institutional & Insider Ownership
77.5% of Mosaic shares are held by institutional investors. Comparatively, 68.6% of Rayonier Advanced Materials shares are held by institutional investors. 0.3% of Mosaic shares are held by company insiders. Comparatively, 3.2% of Rayonier Advanced Materials shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
Mosaic beats Rayonier Advanced Materials on 10 of the 14 factors compared between the two stocks.
About Mosaic
The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments: Phosphates, Potash, and Mosaic Fertilizantes. It owns and operates mines, which produce concentrated phosphate crop nutrients, such as diammonium phosphate, monoammonium phosphate, and ammoniated phosphate products; and phosphate-based animal feed ingredients primarily under the Biofos and Nexfos brand names, as well as produces a double sulfate of potash magnesia product under K-Mag brand name. The company also produces and sells potash for use in the manufacturing of mixed crop nutrients and animal feed ingredients, and for industrial use; and for use in the de-icing and as a water softener regenerant. In addition, it provides nitrogen-based crop nutrients, animal feed ingredients, and other ancillary services; and purchases and sells phosphates, potash, and nitrogen products. The company sells its products to wholesale distributors, retail chains, farmers, cooperatives, independent retailers, and national accounts. The company was incorporated in 2004 and is headquartered in Tampa, Florida.
About Rayonier Advanced Materials
Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company’s products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. It also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, the company provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books and catalog covers, file folders, tags, and lottery tickets; and high-yield pulps to produces hardwood aspen, maple, and birch species for paperboard, packaging, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.
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