Critical Contrast: Diamond Discoveries International (OTCMKTS:DMDD) & Compass Minerals International (NYSE:CMP)

Compass Minerals International (NYSE:CMP) and Diamond Discoveries International (OTCMKTS:DMDD) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.

Valuation & Earnings

This table compares Compass Minerals International and Diamond Discoveries International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Minerals International	$1.20 billion	0.50	$10.50 million	($4.10)	-3.58
Diamond Discoveries International	N/A	N/A	N/A	N/A	N/A

Compass Minerals International has higher revenue and earnings than Diamond Discoveries International.

Profitability

This table compares Compass Minerals International and Diamond Discoveries International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Compass Minerals International	-14.81%	4.75%	1.20%
Diamond Discoveries International	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Compass Minerals International and Diamond Discoveries International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Minerals International	0	2	2	0	2.50
Diamond Discoveries International	0	0	0	0	0.00

Compass Minerals International currently has a consensus target price of $31.00, suggesting a potential upside of 111.32%. Given Compass Minerals International’s stronger consensus rating and higher possible upside, equities analysts plainly believe Compass Minerals International is more favorable than Diamond Discoveries International.

Insider and Institutional Ownership

99.8% of Compass Minerals International shares are held by institutional investors. 1.5% of Compass Minerals International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Compass Minerals International beats Diamond Discoveries International on 8 of the 9 factors compared between the two stocks.

About Compass Minerals International

Compass Minerals International, Inc., provides essential minerals in the United States, Canada, the United Kingdom, and internationally. It operates through two segments, Salt and Plant Nutrition. The Salt segment produces, markets, and sells sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products. This segment provides products for use as a deicer for roadways, consumer, and professional use; as an ingredient in chemical production; for water treatment, human, and animal nutrition; and for various other consumer and industrial uses, as well as records management services. The Plant Nutrition segment produces sulfate of potash specialty fertilizers in various grades that are used in broadcast spreaders, direct application, and liquid fertilizer solutions under the Protassium+ brand name; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products; and develops and produces a portfolio of magnesium chloride-based aerial and ground fire retardant products. This segment provides its products to distributors and retailers of crop inputs, as well as growers. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003. Compass Minerals International, Inc. was founded in 1844 and is headquartered in Overland Park, Kansas.

About Diamond Discoveries International

Diamond Discoveries International Corp. operates as a mineral exploration company. It focuses on the exploration of diamonds, chromium, and gold; and platinum group elements, such as platinum, palladium, and rhodium on its Caribou Property in Thetford Mines, Quebec. The company was founded in 2000 and is based in New York, New York with an additional office in Thetford Mines, Canada. It also has executive offices in New York, New York; and Burlington, Canada.