Critical Review: Diamond Discoveries International (OTCMKTS:DMDD) and Intrepid Potash (NYSE:IPI)

Intrepid Potash (NYSE:IPI) and Diamond Discoveries International (OTCMKTS:DMDD) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

56.1% of Intrepid Potash shares are held by institutional investors. 18.0% of Intrepid Potash shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Intrepid Potash and Diamond Discoveries International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Intrepid Potash	$255.55 million	1.43	-$35.67 million	($3.35)	-8.30
Diamond Discoveries International	N/A	N/A	N/A	N/A	N/A

Diamond Discoveries International has lower revenue, but higher earnings than Intrepid Potash.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Intrepid Potash and Diamond Discoveries International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Intrepid Potash	1	1	0	0	1.50
Diamond Discoveries International	0	0	0	0	0.00

Intrepid Potash presently has a consensus price target of $21.00, indicating a potential downside of 24.46%. Given Intrepid Potash’s stronger consensus rating and higher probable upside, equities analysts clearly believe Intrepid Potash is more favorable than Diamond Discoveries International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Intrepid Potash	-16.86%	-1.32%	-1.14%
Diamond Discoveries International	N/A	N/A	N/A

Summary

Intrepid Potash beats Diamond Discoveries International on 5 of the 8 factors compared between the two stocks.

About Intrepid Potash

Intrepid Potash, Inc., together with its subsidiaries, engages in the extraction and production of the potash in the United States and internationally. It operates through three segments: Potash, Trio, and Oilfield Solutions. The company offers muriate of potash for various markets, such as agricultural market as a fertilizer input; the industrial market as a component in drilling and fracturing fluids for oil and gas wells, as well as an input to other industrial processes; and the animal feed market as a nutrient supplement. It also provides Trio, a specialty fertilizer that delivers potassium, sulfate, and magnesium in a single particle; water for oil and gas services industry; salt for various markets, including animal feed, industrial applications, pool salt, and the treatment of roads and walkways for ice melting or to manage road conditions; magnesium chloride for use as a road treatment agent for deicing and dedusting; brines for use in oil and gas industry to support well workover and completion activities; and metal recovery salts. Intrepid Potash, Inc. was founded in 1999 and is based in Denver, Colorado.

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.