The Mosaic (NYSE:MOS) and The Scotts Miracle-Gro (NYSE:SMG) are both large-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.
Insider & Institutional Ownership
69.8% of The Mosaic shares are held by institutional investors. Comparatively, 63.1% of The Scotts Miracle-Gro shares are held by institutional investors. 0.5% of The Mosaic shares are held by insiders. Comparatively, 27.2% of The Scotts Miracle-Gro 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.
Profitability
This table compares The Mosaic and The Scotts Miracle-Gro's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
The Mosaic | -13.05% | N/A | N/A |
The Scotts Miracle-Gro | 9.38% | 52.60% | 11.09% |
Dividends
The Mosaic pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. The Scotts Miracle-Gro pays an annual dividend of $2.48 per share and has a dividend yield of 1.0%. The Mosaic pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The Scotts Miracle-Gro pays out 34.3% of its earnings in the form of a dividend. The Mosaic has increased its dividend for 1 consecutive years and The Scotts Miracle-Gro has increased its dividend for 11 consecutive years. The Scotts Miracle-Gro is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk & Volatility
The Mosaic has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500. Comparatively, The Scotts Miracle-Gro has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for The Mosaic and The Scotts Miracle-Gro, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
The Mosaic | 1 | 8 | 10 | 0 | 2.47 |
The Scotts Miracle-Gro | 0 | 0 | 3 | 1 | 3.25 |
The Mosaic currently has a consensus target price of $27.9722, indicating a potential downside of 16.63%. The Scotts Miracle-Gro has a consensus target price of $250.00, indicating a potential upside of 5.28%. Given The Scotts Miracle-Gro's stronger consensus rating and higher probable upside, analysts plainly believe The Scotts Miracle-Gro is more favorable than The Mosaic.
Valuation and Earnings
This table compares The Mosaic and The Scotts Miracle-Gro's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
The Mosaic | $8.91 billion | 1.42 | $-1,067,400,000.00 | $0.19 | 176.11 |
The Scotts Miracle-Gro | $4.13 billion | 3.21 | $387.40 million | $7.24 | 32.90 |
The Scotts Miracle-Gro has lower revenue, but higher earnings than The Mosaic. The Scotts Miracle-Gro is trading at a lower price-to-earnings ratio than The Mosaic, indicating that it is currently the more affordable of the two stocks.
Summary
The Scotts Miracle-Gro beats The Mosaic on 14 of the 18 factors compared between the two stocks.