Rentech Nitrogen Partners (NYSE: RNF) and Lsb Industries (NYSE:LXU) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

66.1% of Lsb Industries shares are held by institutional investors. 25.8% of Lsb Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Rentech Nitrogen Partners and Lsb Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rentech Nitrogen Partners 0 0 0 0 N/A
Lsb Industries 0 0 0 0 N/A

Dividends

Rentech Nitrogen Partners pays an annual dividend of $1.71 per share and has a dividend yield of 15.0%. Lsb Industries does not pay a dividend. Rentech Nitrogen Partners pays out -65.3% of its earnings in the form of a dividend. Lsb Industries has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Rentech Nitrogen Partners and Lsb Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rentech Nitrogen Partners N/A N/A N/A ($2.62) -4.35
Lsb Industries $374.58 million 0.65 $112.16 million ($2.98) -2.88

Lsb Industries has higher revenue and earnings than Rentech Nitrogen Partners. Rentech Nitrogen Partners 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 Rentech Nitrogen Partners and Lsb Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rentech Nitrogen Partners -24.24% N/A -28.26%
Lsb Industries -12.19% -13.12% -4.97%

Summary

Lsb Industries beats Rentech Nitrogen Partners on 6 of the 10 factors compared between the two stocks.

Rentech Nitrogen Partners Company Profile

East Dubuque Nitrogen Partners, L.P., formerly Rentech Nitrogen Partners, L.P., is a master limited partnership that owns and operates a fertilizer business. The Company operates through two business segments: East Dubuque and Pasadena. The Company owns and operates the East Dubuque Facility and its Pasadena Facility. The East Dubuque Facility produces ammonia, urea ammonium nitrate (UAN), liquid and granular urea, nitric acid and food-grade carbon dioxide, using natural gas as its primary feedstock. The East Dubuque Facility is located on approximately 210 acres in the northwest corner of Illinois on a 140-foot bluff above the Upper Mississippi River. The Pasadena Facility produces synthetic ammonium sulfate and ammonium sulfate. The Pasadena Facility also produces sulfuric acid and ammonium thiosulfate. The Pasadena Facility’s products are applied to various crops, including soybeans, potatoes, cotton, canola, alfalfa, corn and wheat.

Lsb Industries Company Profile

LSB Industries, Inc. is a holding company. The Company, through its subsidiaries, is engaged in the manufacture and sale of chemical products. The Company operates through chemical business segment. It is a manufacturer and distributor of nitrogen fertilizer and other nitrogen products in North America. Its principal nitrogen products are ammonia (AN), fertilizer grade ammonium nitrate (high density ammonium nitrate prills used in the agricultural industry (HDAN)), urea ammonia nitrate (UAN), and AN solution for agricultural applications, high purity and commercial grade ammonia, high purity AN, sulfuric acids, concentrated, blended and regular nitric acid, mixed nitrating acids, carbon dioxide, and diesel exhaust fluid for industrial applications, and industrial grade AN (low density ammonium nitrate prills used in the mining industry (LDAN)) and 83% AN solution (AN solution) for the mining industry. Its customers include cooperatives and independent fertilizer distributors.

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