Compass Minerals International (NYSE:CMP) versus Innospec (NASDAQ:IOSP) Head-To-Head Analysis

Innospec (NASDAQ:IOSP) and Compass Minerals International (NYSE:CMP) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Risk & Volatility

Innospec has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Compass Minerals International has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Innospec and Compass Minerals International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innospec	2	0	0	1	2.00
Compass Minerals International	2	2	1	0	1.80

Compass Minerals International has a consensus price target of $20.60, suggesting a potential upside of 4.97%. Given Compass Minerals International’s higher probable upside, analysts clearly believe Compass Minerals International is more favorable than Innospec.

Earnings and Valuation

This table compares Innospec and Compass Minerals International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innospec	$1.85 billion	1.04	$35.60 million	($0.03)	-2,587.67
Compass Minerals International	$1.24 billion	0.66	-$79.80 million	($1.92)	-10.22

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

Insider & Institutional Ownership

96.6% of Innospec shares are owned by institutional investors. Comparatively, 99.8% of Compass Minerals International shares are owned by institutional investors. 1.3% of Innospec shares are owned by company insiders. Comparatively, 1.5% of Compass Minerals International shares are owned by company 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.

Profitability

This table compares Innospec and Compass Minerals International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innospec	-0.07%	10.28%	7.35%
Compass Minerals International	-6.42%	-8.22%	-1.28%

Summary

Innospec beats Compass Minerals International on 9 of the 15 factors compared between the two stocks.

About Innospec

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. The company's Fuel Specialties segment offers a range of specialty chemical products that are used as additives in additives in diesel, jet, marine, fuel oil and other fuels. This segment's products are used in the operation of commercial trucking, marine and aviation engines, power station generators, heating oil, and other industrial machinery applications. Its Performance Chemicals segment provides technology-based solutions for its customers' processes or products that focuses on the personal care, home care, agrochemical, construction, mining, and other industrial markets. The company's Oilfield Services segment develops and markets chemical solutions for drilling, completion, fracturing, stimulation, and completion operations; and products for oil and gas production. It sells its products primarily to oil and gas exploration and production companies, oil refineries, fuel manufacturers and users, personal care and home care companies, formulators of agrochemical, and other chemical and industrial companies. The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.

About Compass Minerals International

Compass Minerals International, Inc., provides essential minerals in the United States, Canada, the United Kingdom, and internationally. It operates through two segments, Salt and Plant Nutrition. The Salt segment produces, markets, and sells sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products. This segment provides products for use as a deicer for roadways, consumer, and professional use; as an ingredient in chemical production; for water treatment, human, and animal nutrition; and for various other consumer and industrial uses, as well as records management services. The Plant Nutrition segment produces sulfate of potash specialty fertilizers in various grades that are used in broadcast spreaders, direct application, and liquid fertilizer solutions under the Protassium+ brand name; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products; and develops and produces a portfolio of magnesium chloride-based aerial and ground fire retardant products. This segment provides its products to distributors and retailers of crop inputs, as well as growers. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003. Compass Minerals International, Inc. was founded in 1844 and is headquartered in Overland Park, Kansas.