Critical Analysis: K+S Aktiengesellschaft (OTCMKTS:KPLUY) and CVR Partners (NYSE:UAN)

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

Institutional and Insider Ownership

43.8% of CVR Partners shares are held by institutional investors. Comparatively, 0.0% of K+S Aktiengesellschaft shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CVR Partners	9.29%	16.32%	5.04%
K+S Aktiengesellschaft	N/A	N/A	N/A

Dividends

CVR Partners pays an annual dividend of $7.60 per share and has a dividend yield of 11.3%. K+S Aktiengesellschaft pays an annual dividend of $0.08 per share and has a dividend yield of 1.4%. CVR Partners pays out 96.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. K+S Aktiengesellschaft pays out 8.5% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares CVR Partners and K+S Aktiengesellschaft”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CVR Partners	$532.78 million	1.33	$172.43 million	$7.86	8.54
K+S Aktiengesellschaft	N/A	N/A	N/A	$0.97	6.28

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

Analyst Ratings

This is a summary of current recommendations and price targets for CVR Partners and K+S Aktiengesellschaft, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CVR Partners	0	0	0	0	N/A
K+S Aktiengesellschaft	0	0	0	0	N/A

Summary

CVR Partners beats K+S Aktiengesellschaft on 8 of the 9 factors compared between the two stocks.

About CVR Partners

CVR Partners, LP, together with its subsidiaries, engages in the production and sale of nitrogen fertilizer products in the United States. The company offers ammonia products for agricultural and industrial customers; and urea ammonium nitrate products to agricultural customers, as well as retailers and distributors. CVR GP, LLC serves as the general partner of the company. CVR Partners, LP was incorporated in 2007 and is based in Sugar Land, Texas. CVR Partners, LP is a subsidiary of CVR Energy, Inc.

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.