Intrepid Potash (IPI) & Hecla Mining (HL) Financial Comparison

Hecla Mining (NYSE: IPI) and Intrepid Potash (NYSE:IPI) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Hecla Mining and Intrepid Potash’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hecla Mining -1.02% 2.91% 1.82%
Intrepid Potash -1.47% -1.15% -0.91%

Analyst Recommendations

This is a breakdown of current ratings for Hecla Mining and Intrepid Potash, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hecla Mining 0 3 4 0 2.57
Intrepid Potash 0 2 1 0 2.33

Hecla Mining currently has a consensus target price of $4.82, indicating a potential upside of 69.77%. Intrepid Potash has a consensus target price of $4.00, indicating a potential upside of 17.65%. Given Hecla Mining’s stronger consensus rating and higher possible upside, equities analysts clearly believe Hecla Mining is more favorable than Intrepid Potash.

Dividends

Hecla Mining pays an annual dividend of $0.01 per share and has a dividend yield of 0.4%. Intrepid Potash does not pay a dividend. Hecla Mining pays out 10.0% of its earnings in the form of a dividend.

Volatility & Risk

Hecla Mining has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500. Comparatively, Intrepid Potash has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Earnings and Valuation

This table compares Hecla Mining and Intrepid Potash’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hecla Mining $577.78 million 2.34 -$23.51 million $0.10 28.40
Intrepid Potash $157.61 million 2.83 -$22.91 million ($0.18) -18.89

Intrepid Potash has lower revenue, but higher earnings than Hecla Mining. Intrepid Potash is trading at a lower price-to-earnings ratio than Hecla Mining, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

52.0% of Hecla Mining shares are owned by institutional investors. Comparatively, 45.7% of Intrepid Potash shares are owned by institutional investors. 1.7% of Hecla Mining shares are owned by insiders. Comparatively, 27.3% of Intrepid Potash shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Hecla Mining beats Intrepid Potash on 11 of the 16 factors compared between the two stocks.

About Hecla Mining

Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, and produces precious and base metal deposits worldwide. The company offers zinc, lead, and bulk flotation concentrates to custom smelters and brokers; and unrefined gold and silver bullion bars to precious metals traders. It owns 100% interests in the Greens Creek mine located on Admiralty Island, Alaska; the Lucky Friday mine located in northern Idaho; the Casa Berardi mine located in the Abitibi region of northwestern Quebec, Canada; and the San Sebastian mine located in the state of Durango, Mexico. The company also owns interests in the Fire Creek mine located primarily in Lander County, Nevada; the Hollister mine located in Elko County, Nevada; and the Midas property located northeast of Winnemucca, Nevada. Hecla Mining Company was founded in 1891 and is headquartered in Coeur d'Alene, Idaho.

About Intrepid Potash

Intrepid Potash, Inc. produces and sells potash and langbeinite products in the United States and internationally. It operates through two segments, Potash and Trio. The Potash segment offers muriate of potash or potassium chloride for use as a fertilizer input in the agricultural market; as a component in drilling and fracturing fluids for oil and gas wells, as well as an input to other industrial processes in the industrial market; and as a nutrient supplement in the animal feed market. The Trio segment provides Trio, a specialty fertilizer that delivers potassium, sulfate, and magnesium in a single particle. The company also sells water for use in the oil and gas services industry. In addition, it offers salt for use in animal feeds, industrial applications, pool salts, and treatment of roads and walkways; magnesium chloride for use in the deicing and dedusting of roads; brines for well development and completion applications in the oil and gas industry; and metal recovery salt, a combination of potash and salt to enhance the recovery of aluminum in the aluminum recycling processing facilities. Intrepid Potash, Inc. was founded in 2000 and is based in Denver, Colorado.

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