This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Analyst's Toolkit: Mosaic Beats Potash

Stocks in this article: POT MOS

Analyst's Toolkit is a weekly feature that assesses stocks, bonds and funds by using measures that can give different perspectives on valuation. Come back every Wednesday for fresh insights into analyzing securities.

SASKATOON, Saskatchewan ( TheStreet) -- After reaching their apex in June 2008, shares of Potash Corp. (POT - Get Report) and Mosaic Co. (MOS) have fallen by more than half.

The companies offered exposure to a market that would certainly factor into the ongoing global expansion. Fertilizer producers' growth was projected to go into orbit as the world figured out a way to produce enough food to feed emerging super powers such as China and India.

While growth petered out during the economic contraction of the past year, these companies still appear to be well-positioned to profit from globalization. Potash and Mosaic are beating the S&P 500 this year. Potash has climbed 32%, while Mosaic is up 54%, versus the S&P 500's increase of only 13%.

Deciding between those investments can pose a more difficult decision for investors than simply whether the industry looks attractive in the current economic climate. Both Mosaic and Potash have appealing metrics underpinning them. However, when looking at the complete picture, one is a clear favorite.

Beta

Potash: 1.18; Mosaic: 1.37.

Both Potash and Mosaic offer betas of greater than 1, suggesting the stocks will be more volatile than the market as a whole. While this could be troubling for investors seeking a low-risk portfolio to protect capital, investors who desire greater growth opportunities should be interested by these numbers. During these times of great economic uncertainty, many investments have beta values well in excess of 2. These relatively modest figures promise that both investments should offer controlled movement.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs