Mosaic vs Nutrien Which Is More Profitable?

Mosaic and Nutrien are two of the largest companies in the agricultural industry, both specializing in the production and distribution of fertilizer products. Mosaic is known for its focus on phosphate and potash production, while Nutrien offers a wider range of products and services including retail distribution. Both companies are influenced by factors such as crop prices, global demand for agricultural products, and government regulations. Investors interested in the agricultural sector may consider these stocks for their potential growth and dividend yields.

Mosaic or Nutrien?

When comparing Mosaic and Nutrien, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Mosaic and Nutrien.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Mosaic has a dividend yield of 3.71%, while Nutrien has a dividend yield of 4.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mosaic reports a 5-year dividend growth of 60.04% year and a payout ratio of 109.84%. On the other hand, Nutrien reports a 5-year dividend growth of 5.40% year and a payout ratio of 133.25%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Mosaic P/E ratio at 36.78 and Nutrien's P/E ratio at 30.57. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mosaic P/B ratio is 0.77 while Nutrien's P/B ratio is 0.96.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Mosaic has seen a 5-year revenue growth of 0.66%, while Nutrien's is 0.88%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mosaic's ROE at 2.04% and Nutrien's ROE at 3.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $27.59 for Mosaic and $48.15 for Nutrien. Over the past year, Mosaic's prices ranged from $24.12 to $38.30, with a yearly change of 58.79%. Nutrien's prices fluctuated between $44.65 and $60.87, with a yearly change of 36.34%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.