Emerge Energy Services (NYSE: EMES) and Intrepid Potash (NYSE:IPI) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.
Institutional & Insider Ownership
18.3% of Emerge Energy Services shares are held by institutional investors. Comparatively, 46.9% of Intrepid Potash shares are held by institutional investors. 27.3% of Intrepid Potash shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Emerge Energy Services and Intrepid Potash’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Emerge Energy Services||-1.88%||-8.54%||-1.29%|
Volatility & Risk
Emerge Energy Services has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, Intrepid Potash has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Valuation & Earnings
This table compares Emerge Energy Services and Intrepid Potash’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Emerge Energy Services||$364.30 million||0.61||-$6.83 million||($0.12)||-60.17|
|Intrepid Potash||$157.61 million||3.34||-$22.91 million||($0.18)||-22.39|
Emerge Energy Services has higher revenue and earnings than Intrepid Potash. Emerge Energy Services is trading at a lower price-to-earnings ratio than Intrepid Potash, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for Emerge Energy Services and Intrepid Potash, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Emerge Energy Services||0||5||3||0||2.38|
Emerge Energy Services presently has a consensus target price of $13.14, indicating a potential upside of 82.03%. Intrepid Potash has a consensus target price of $3.56, indicating a potential downside of 11.60%. Given Emerge Energy Services’ stronger consensus rating and higher probable upside, equities analysts plainly believe Emerge Energy Services is more favorable than Intrepid Potash.
Emerge Energy Services beats Intrepid Potash on 9 of the 14 factors compared between the two stocks.
Emerge Energy Services Company Profile
Emerge Energy Services LP owns, operates, acquires and develops a portfolio of energy service assets. The Company operates through Sand segment. The Company conducts its Sand operations through its subsidiary, Superior Silica Sands LLC (SSS). The Company’s Sand business mines, processes and distributes silica sand, an input for the hydraulic fracturing of oil and gas wells. As of December 31, 2016, its Wisconsin facilities consisted of three dry plants located in Arland, Barron and New Auburn, Wisconsin, with a total permitted capacity of 6.3 million finished tons per year, and five wet plants and mine complexes. As of December 31, 2016, its dry plant in Kosse, Texas, had a capacity of 600,000 tons per year that is supplied by a separate mine and wet plant that processes local Texas sand. As of December 31, 2016, the Company also had 14 transload facilities located throughout North America in the basins where it delivers its sand, as well as a fleet of 5,573 railcars.
Intrepid Potash Company Profile
Intrepid Potash, Inc. is a producer of muriate of potash (potassium chloride or potash) and langbeinite (sulfate of potash magnesia) in the United States, which it markets and sells as Trio. The Company operates in the extraction, production and sale of potassium-related products. Its products are potash and Trio. It sells potash into three markets, including the agricultural market as a fertilizer input; the industrial market as a component in drilling and fracturing fluids for oil and gas wells and an input to other industrial processes, and the animal feed market as a nutrient supplement. Trio, which it mines from langbeinite ore, is its specialty fertilizer that delivers potassium, sulfate and magnesium in a single particle and has low chloride. The Company also produces salt, magnesium chloride, metal recovery salts and brine containing salt and potassium from its mining processes. It produces potash from three solar evaporation solution mining facilities.
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