K+S Aktiengesellschaft (OTCMKTS:KPLUY) and CF Industries (NYSE:CF) Head to Head Comparison

CF Industries (NYSE:CF) and K+S Aktiengesellschaft (OTCMKTS:KPLUY) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of current ratings and price targets for CF Industries and K+S Aktiengesellschaft, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CF Industries	2	10	4	0	2.13
K+S Aktiengesellschaft	0	1	2	0	2.67

CF Industries currently has a consensus price target of $87.94, suggesting a potential upside of 9.08%. Given CF Industries’ higher probable upside, equities analysts plainly believe CF Industries is more favorable than K+S Aktiengesellschaft.

Valuation & Earnings

This table compares CF Industries and K+S Aktiengesellschaft’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CF Industries	$6.63 billion	2.28	$1.53 billion	$7.84	10.27
K+S Aktiengesellschaft	N/A	N/A	N/A	$0.97	7.56

CF Industries has higher revenue and earnings than K+S Aktiengesellschaft. K+S Aktiengesellschaft is trading at a lower price-to-earnings ratio than CF Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CF Industries and K+S Aktiengesellschaft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CF Industries	23.00%	18.44%	11.19%
K+S Aktiengesellschaft	N/A	N/A	N/A

Dividends

CF Industries pays an annual dividend of $2.00 per share and has a dividend yield of 2.5%. K+S Aktiengesellschaft pays an annual dividend of $0.08 per share and has a dividend yield of 1.1%. CF Industries pays out 25.5% of its earnings in the form of a dividend. K+S Aktiengesellschaft pays out 8.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CF Industries has raised its dividend for 1 consecutive years. CF Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

93.1% of CF Industries shares are held by institutional investors. Comparatively, 0.0% of K+S Aktiengesellschaft shares are held by institutional investors. 0.4% of CF Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

CF Industries beats K+S Aktiengesellschaft on 12 of the 14 factors compared between the two stocks.

About CF Industries

CF Industries Holdings, Inc., together with its subsidiaries, engages in the manufacture and sale of hydrogen and nitrogen products for energy, fertilizer, emissions abatement, and other industrial activities in North America, Europe, and internationally. It operates through Ammonia, Granular Urea, UAN, AN, and Other segments. The company's principal products include anhydrous ammonia, granular urea, urea ammonium nitrate, and ammonium nitrate products. It also offers diesel exhaust fluid, urea liquor, nitric acid, and aqua ammonia products. The company primarily serves cooperatives, independent fertilizer distributors, traders, wholesalers, and industrial users. CF Industries Holdings, Inc. was founded in 1946 and is headquartered in Northbrook, Illinois.

About K+S Aktiengesellschaft

K+S Aktiengesellschaft, together with its subsidiaries, operates as a supplier of mineral products for the agricultural, industrial, consumer, and community sectors worldwide. It offers potassium chloride for crops, such as grain, corn, rice, and soybean; fertilizer specialties that are used for crops with magnesium and sulfur requirements, including rapeseed and potatoes, as well as for chloride-sensitive crops consisting of citrus, grapes, and vegetables; and water-soluble fertilizers for use in fertigation of fruit and vegetables under the KALISOP, KORN-KALI, ROLL-KALI, PATENTKALI, ESTA KIESERIT, MAGNESIA-KAINIT, SOLUMOP, SOLUSOP, SOLUCMS, SOLUMAP, SOLUMKP, EPSO TOP, EPSO MICROTOP, EPSO COMBITOP, EPSO PROFITOP, and EPSO BORTOP brands. The company also provides melting salts, sodium chloride, natural rock salt, high-purity vaccum salt and natural sea salt, potassium chloride, Epsom salt, minerals for pets and livestock, aluminum recycling, salt licks for farm and wild animals under the Alasal, APISAL, AXAL PRO, NUTRIKS, NUTRIKS KaliSel, KASA, k-DRILL, Montanal, and SOLSEL brand names. In addition, it offers table salts under the SALDORO, Cérébos, and Vatel brands; salts for water treatment; dishwashing salts; and de-icing salts. K+S Aktiengesellschaft was founded in 1889 and is headquartered in Kassel, Germany.