Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nitrogen products producer Terra Nitrogen (NYSE: TNH) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Terra's business and see what CAPS investors are saying about the stock right now.

Terra facts

Headquarters (Founded)

Sioux City, Iowa (1991)

Market Cap

$2.44 billion


Agricultural chemicals

Trailing-12-Month Revenue

$641.8 million


Chairman/CEO Dr. Stephen Wilson

Vice President Douglas Barnard

Return on Capital (Average, Past 3 Years)



$221.7 million / $0

Trailing Dividend Yield


Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. *Managers of Terra Nitrogen's general partner.

On CAPS, 96% of the 1,211 members who have rated Terra believe the stock will outperform the S&P 500 going forward. These bulls include toshimelonhead and All-Star TMFTheDoctor, who is ranked in the top 20% of our community.

Earlier this month, toshimelonhead touched on the unfortunate tailwinds working in Terra's favor:

China is experiencing its worst drought in 50 years. Europe is having its worst in 44 years. 45 percent of the US winter wheat is in poor or very poor condition. Time to buy agriculture stocks.

Currently, Terra even sports a cheapish P/E of 8.4. That represents a clear discount to industry peers like Monsanto (NYSE: MON) (29.2), PotashCorp (NYSE: POT) (23.2), and Syngenta (NYSE: SYT) (22.2).

CAPS All-Star TMFTheDoctor expands on the Terra outperform argument:

I am generally bullish on agriculture in general due to widely known and discussed factors like population growth and emerging markets increasing demand while things like climate change, urban sprawl, and water shortages reduce supply. Fertilizer is a good way to play this thesis, and nitrogen in particular has an advantage as it gets washed away in the rain and needs to be reapplied often. TNH doesn't particularly stand out from its peers in any glaring way -- it's hard to when you're basically selling the same commodities as everyone else -- but it will benefit from the broader thesis and the high dividend makes it very attractive. While the dividend isn't fixed, it's averaged about 8% over the last five years. TNH has a very high payout ratio but only because it is an MLP attached to a larger company, so TNH is able to basically pay out all almost all of its income.

What do you think about Terra, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended creating a synthetic long position in Monsanto and buying shares of Syngenta. Try any of our Foolish newsletter services free for 30 days.

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