Lsb Industries (NYSE:LXU – Get Free Report) and Corteva (NYSE:CTVA – Get Free Report) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.
Profitability
This table compares Lsb Industries and Corteva’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lsb Industries | 5.58% | 6.98% | 3.10% |
| Corteva | 5.66% | 10.18% | 6.00% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for Lsb Industries and Corteva, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lsb Industries | 0 | 5 | 1 | 0 | 2.17 |
| Corteva | 1 | 6 | 16 | 0 | 2.65 |
Lsb Industries presently has a consensus target price of $13.38, suggesting a potential upside of 30.11%. Corteva has a consensus target price of $60.59, suggesting a potential upside of 434.97%. Given Corteva’s stronger consensus rating and higher probable upside, analysts clearly believe Corteva is more favorable than Lsb Industries.
Valuation and Earnings
This table compares Lsb Industries and Corteva”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lsb Industries | $658.06 million | 1.12 | $24.61 million | $0.50 | 20.56 |
| Corteva | $17.40 billion | 0.43 | $1.09 billion | $1.51 | 7.50 |
Corteva has higher revenue and earnings than Lsb Industries. Corteva is trading at a lower price-to-earnings ratio than Lsb Industries, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Lsb Industries has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Corteva has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.
Institutional & Insider Ownership
73.7% of Lsb Industries shares are owned by institutional investors. Comparatively, 81.5% of Corteva shares are owned by institutional investors. 3.0% of Lsb Industries shares are owned by company insiders. Comparatively, 0.2% of Corteva shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
Corteva beats Lsb Industries on 11 of the 14 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 Corteva
Corteva, Inc. operates in the agriculture business. It operates through two segments, Seed and Crop Protection. The Seed segment develops and supplies advanced germplasm and traits that produce optimum yield for farms. It offers trait technologies that enhance resistance to weather, disease, insects, and herbicides used to control weeds, as well as food and nutritional characteristics. This segment also provides digital solutions that assist farmer decision-making with a view to optimize product selection, and maximize yield and profitability. The Crop Protection segment offers products that protect against weeds, insects and other pests, and diseases, as well as enhances crop health above and below ground through nitrogen management and seed-applied technologies. This segment provides herbicides, insecticides, nitrogen stabilizers, and pasture and range management herbicides. It serves agricultural input industry. The company operates in the United States, Canada, Latin America, the Asia Pacific, Europe, the Middle East, and Africa. Corteva, Inc. was incorporated in 2018 and is headquartered in Indianapolis, Indiana.
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