Head-To-Head Survey: Mosaic (NYSE:MOS) & China BlueChemical (OTCMKTS:CBLUY)

Mosaic (NYSE:MOS) and China BlueChemical (OTCMKTS:CBLUY) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and price targets for Mosaic and China BlueChemical, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mosaic	0	6	6	1	2.62
China BlueChemical	0	0	0	0	0.00

Mosaic currently has a consensus target price of $35.58, indicating a potential downside of 1.76%. Given Mosaic’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Mosaic is more favorable than China BlueChemical.

Institutional & Insider Ownership

77.5% of Mosaic shares are held by institutional investors. 0.5% of Mosaic shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Mosaic and China BlueChemical”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mosaic	$11.12 billion	1.03	$174.90 million	$1.16	31.22
China BlueChemical	$1.66 billion	0.47	$149.01 million	N/A	N/A

Mosaic has higher revenue and earnings than China BlueChemical.

Dividends

Mosaic pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. China BlueChemical pays an annual dividend of $0.68 per share and has a dividend yield of 8.0%. Mosaic pays out 75.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mosaic has raised its dividend for 7 consecutive years.

Volatility and Risk

Mosaic has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, China BlueChemical has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Profitability

This table compares Mosaic and China BlueChemical’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mosaic	3.32%	4.91%	2.53%
China BlueChemical	N/A	N/A	N/A

Summary

Mosaic beats China BlueChemical on 14 of the 16 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 China BlueChemical

China BlueChemical Ltd., together with its subsidiaries, develops, produces, and sells mineral fertilizers and chemical products in the People's Republic of China and internationally. The company operates through Urea, Phosphorus and Compound Fertiliser, Methanol, and Others segments. It offers urea, methanol, phosphorus fertilizers, including mono-ammonium phosphate, di-ammonium phosphate, compound fertilizers, and acrylonitrile. In addition, the company manufactures and sells bulk blending fertilizers and woven plastic bags. Further, it is involved in port operations; provision of transportation services, overseas shipping services; and trades in fertilizers, chemicals, and coal and coal products, as well as mining of coal. Additionally, the company engages in mining and processing of phosphate; and manufacturing and sale methyl methacrylate. The company was founded in 2000 and is headquartered in Beijing, the People's Republic of China. China BlueChemical Ltd. is a subsidiary of China National Offshore Oil Corporation.