Lsb Industries (NYSE:LXU – Get Free Report) and Olin (NYSE:OLN – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, valuation, profitability and risk.
Institutional and Insider Ownership
73.7% of Lsb Industries shares are held by institutional investors. Comparatively, 88.7% of Olin shares are held by institutional investors. 3.0% of Lsb Industries shares are held by insiders. Comparatively, 1.6% of Olin shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
Lsb Industries has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Olin has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lsb Industries | 0 | 5 | 0 | 0 | 2.00 |
| Olin | 2 | 11 | 3 | 1 | 2.18 |
Lsb Industries currently has a consensus price target of $15.33, indicating a potential upside of 17.72%. Olin has a consensus price target of $27.79, indicating a potential upside of 6.89%. Given Lsb Industries’ higher possible upside, analysts clearly believe Lsb Industries is more favorable than Olin.
Valuation & Earnings
This table compares Lsb Industries and Olin”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lsb Industries | $615.21 million | 1.52 | $24.61 million | $0.63 | 20.67 |
| Olin | $6.78 billion | 0.44 | -$100.50 million | ($1.12) | -23.21 |
Lsb Industries has higher earnings, but lower revenue than Olin. Olin is trading at a lower price-to-earnings ratio than Lsb Industries, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Lsb Industries and Olin’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lsb Industries | 7.16% | 8.91% | 3.96% |
| Olin | -1.89% | -4.68% | -1.18% |
Summary
Lsb Industries beats Olin on 9 of the 15 factors compared between the two stocks.
About Lsb Industries
LSB Industries, Inc. engages in the manufacture, marketing, and sale of chemical products. The company provides nitrogen-based fertilizers, such as ammonia, fertilizer grade high density ammonium nitrate (HDAN), and urea ammonia nitrate for fertilizer for corn, pastures, and other crops, as well as nitrogen, phosphorus, and potassium (NPK) fertilizer blends application. It also offers high purity and commercial grade ammonia, high purity ammonium nitrate, sulfuric acids, mixed nitrating acids, carbon dioxide, and diesel exhaust fluids, as well as concentrated, and blended and regular nitric acids for various applications, including semiconductor, nylon, and polyurethane intermediates, ammonium nitrate, and metal processing; chemical feedstocks, emissions abatement, water treatments, and refrigerants; pulp and paper, aluminum, water treatment, metals, and vanadium processing; abatement for diesel vehicles; and food refrigeration, dry ice, and enhanced oil recovery. In addition, the company provides industrial grade and low density ammonium nitrate, and ammonium nitrate for explosives mining, quarries, and other blasting activities. It sells its products through distributors, as well as directly to end customers in the United States and other parts of North America. The company serves to the agricultural, industrial, and mining markets. LSB Industries, Inc. was incorporated in 1968 and is headquartered in Oklahoma City, Oklahoma.
About Olin
Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.
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