Comparing Mosaic (NYSE:MOS) & Kronos Worldwide (NYSE:KRO)

Kronos Worldwide (NYSE:KRO) and Mosaic (NYSE:MOS) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kronos Worldwide	$1.86 billion	0.46	-$110.90 million	($0.95)	-7.89
Mosaic	$12.25 billion	0.48	$540.70 million	($2.02)	-9.10

Mosaic has higher revenue and earnings than Kronos Worldwide. Mosaic is trading at a lower price-to-earnings ratio than Kronos Worldwide, indicating that it is currently the more affordable of the two stocks.

Dividends

Kronos Worldwide pays an annual dividend of $0.20 per share and has a dividend yield of 2.7%. Mosaic pays an annual dividend of $0.88 per share and has a dividend yield of 4.8%. Kronos Worldwide pays out -21.1% of its earnings in the form of a dividend. Mosaic pays out -43.6% 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. Mosaic has increased its dividend for 7 consecutive years. Mosaic is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

Kronos Worldwide has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Mosaic has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500.

Profitability

This table compares Kronos Worldwide and Mosaic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kronos Worldwide	-5.63%	-12.28%	-5.16%
Mosaic	-5.21%	3.77%	1.87%

Insider & Institutional Ownership

15.1% of Kronos Worldwide shares are held by institutional investors. Comparatively, 77.5% of Mosaic shares are held by institutional investors. 0.2% of Kronos Worldwide shares are held by insiders. Comparatively, 0.3% of Mosaic shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Kronos Worldwide and Mosaic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kronos Worldwide	2	1	1	0	1.75
Mosaic	3	13	6	0	2.14

Kronos Worldwide currently has a consensus price target of $8.50, indicating a potential upside of 13.33%. Mosaic has a consensus price target of $26.28, indicating a potential upside of 42.88%. Given Mosaic’s stronger consensus rating and higher probable upside, analysts clearly believe Mosaic is more favorable than Kronos Worldwide.

Summary

Mosaic beats Kronos Worldwide on 14 of the 17 factors compared between the two stocks.

About Kronos Worldwide

Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally. The company produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for various products, including paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, foods, and cosmetics. It also produces ilmenite, a raw material used directly as a feedstock by sulfate-process TiO2 plants; iron-based chemicals, which are used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as in the manufacture of iron pigments, cement, and agricultural products; specialty chemicals for use in the formulation of pearlescent pigments, and production of electroceramic capacitors for cell phones and other electronic devices, as well as for use in natural gas pipe, and other specialty applications. In addition, the company provides technical services for its products. It sells its products under the KRONOS brand through agents and distributors to paint, plastics, decorative laminate, and paper manufacturers. The company was founded in 1916 and is headquartered in Dallas, Texas. Kronos Worldwide, Inc. is a subsidiary of Valhi, Inc.

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.