LSB Industries (LXU) versus Linde (LIN) Head to Head Comparison

LSB Industries (NYSE:LXU) and Linde (NYSE:LIN) are both multi-sector conglomerates companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Dividends

Linde pays an annual dividend of $3.30 per share and has a dividend yield of 2.2%. LSB Industries does not pay a dividend. Linde pays out 56.4% of its earnings in the form of a dividend.

Institutional & Insider Ownership

60.4% of LSB Industries shares are held by institutional investors. Comparatively, 75.2% of Linde shares are held by institutional investors. 22.6% of LSB Industries shares are held by company insiders. Comparatively, 45.9% of Linde shares are held 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.

Valuation & Earnings

This table compares LSB Industries and Linde’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LSB Industries $427.50 million 0.47 -$29.21 million N/A N/A
Linde $11.44 billion 3.84 $1.25 billion $5.85 26.11

Linde has higher revenue and earnings than LSB Industries.

Analyst Ratings

This is a summary of recent recommendations for LSB Industries and Linde, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LSB Industries 0 0 0 0 N/A
Linde 1 4 6 0 2.45

Linde has a consensus target price of $181.50, suggesting a potential upside of 18.84%. Given Linde’s higher probable upside, analysts clearly believe Linde is more favorable than LSB Industries.

Profitability

This table compares LSB Industries and Linde’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LSB Industries -15.65% -14.79% -5.11%
Linde 11.93% 28.54% 9.41%

Volatility & Risk

LSB Industries has a beta of 4.61, meaning that its stock price is 361% more volatile than the S&P 500. Comparatively, Linde has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Summary

Linde beats LSB Industries on 11 of the 13 factors compared between the two stocks.

LSB Industries Company Profile

LSB Industries, Inc. manufactures and sells chemical products for the agricultural, mining, and industrial markets in the United States. It provides nitrogen-based fertilizers, such as ammonia, fertilizer grade ammonium nitrate (HDAN), and urea ammonia nitrate for fertilizer and fertilizer blends for corn and other crops, and NPK fertilizer blends applications. The company 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, blended, and regular nitric acids for various applications, including semi-conductor and polyurethane intermediates; pulp and paper, alum, water treatment, metals, and vanadium processing; power plant emissions abatement, water treatment, refrigerants, and metals processing; and exhaust stream additives. In addition, it provides industrial grade ammonium nitrate, ammonium nitrate solutions, and specialty HDAN solutions for the specialty emulsions for mining, surface mining, quarries, and construction applications. The company sells its products through distributors, as well as directly to end customers. LSB Industries, Inc. was founded in 1968 and is headquartered in Oklahoma City, Oklahoma.

Linde Company Profile

Linde plc operates as an industrial gas and engineering company. The company offers oxygen, nitrogen, argon, rare gases, carbon monoxide, carbon dioxide, helium, hydrogen, electronic gases, specialty gases, acetylene, shielding gases, and noble gases, as well as develops and distributes procedures and systems for gas applications. It also offers pharmaceutical and medical gases and services to the healthcare industry; and support services, technical equipment, and safety products, as well as develops hydrogen technology. In addition, the company supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders; offers electric arc, plasma and wire spray, and high-velocity oxy-fuel equipment; and distributes hardgoods and welding equipment purchased from independent manufacturers. Further, it provides planning, project development, and construction services with a focus on market segments, such as olefin, natural gas, air separation, and hydrogen and synthesis gas plants. The company serves customers worldwide. Linde plc was founded in 1907 and is based in Guildford, the United Kingdom.

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