Mosaic (NYSE:MOS – Get Free Report) and ARQ (NASDAQ:ARQ – Get Free Report) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Volatility & Risk
Mosaic has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, ARQ has a beta of 2.08, indicating that its share price is 108% more volatile than the S&P 500.
Insider and Institutional Ownership
77.5% of Mosaic shares are held by institutional investors. Comparatively, 18.5% of ARQ shares are held by institutional investors. 0.3% of Mosaic shares are held by insiders. Comparatively, 20.1% of ARQ shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Mosaic and ARQ”s top-line revenue, earnings per share (EPS) 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 |
| ARQ | $120.34 million | 0.64 | -$52.61 million | ($1.26) | -1.40 |
Mosaic has higher revenue and earnings than ARQ. Mosaic is trading at a lower price-to-earnings ratio than ARQ, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Mosaic and ARQ, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mosaic | 3 | 13 | 6 | 0 | 2.14 |
| ARQ | 1 | 1 | 1 | 0 | 2.00 |
Mosaic presently has a consensus target price of $26.28, suggesting a potential upside of 42.88%. ARQ has a consensus target price of $5.00, suggesting a potential upside of 182.49%. Given ARQ’s higher possible upside, analysts plainly believe ARQ is more favorable than Mosaic.
Profitability
This table compares Mosaic and ARQ’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mosaic | -5.21% | 3.77% | 1.87% |
| ARQ | -42.33% | -2.54% | -1.88% |
Summary
Mosaic beats ARQ on 8 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 ARQ
Arq, Inc. is a holding company. It engages in the provision of environmental and emission control equipment to the power generation industry. The company operates through the following Segments: Refined Coal and Advanced Purification Technologies. The Refined Coal segment includes the Tinuum Group, Tinuum Services, and GWN Manager. The Advanced Purification Technologies segment refers to the sale of Activated Carbon Injection and Dry Sorbent Injection equipment systems, chemical sales, consulting services, and other sales related to the reduction of emissions in the coal-fired electric generation process and the electric utility industry. The company was founded in 1996 and is headquartered in Greenwood Village, CO.
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