Mosaic (NYSE: MOS) and Lsb Industries (NYSE:LXU) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitabiliy, earnings, dividends, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings for Mosaic and Lsb Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mosaic 5 7 1 0 1.69
Lsb Industries 0 0 0 0 N/A

Mosaic presently has a consensus price target of $25.09, indicating a potential upside of 9.23%. Given Mosaic’s higher probable upside, research analysts plainly believe Mosaic is more favorable than Lsb Industries.

Valuation & Earnings

This table compares Mosaic and Lsb Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mosaic $7.07 billion 1.14 $1.07 billion $0.11 208.84
Lsb Industries $398.96 million 0.75 -$906,000.00 $2.80 3.75

Mosaic has higher revenue and earnings than Lsb Industries. Lsb Industries is trading at a lower price-to-earnings ratio than Mosaic, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Mosaic and Lsb Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mosaic -0.06% -0.04% -0.02%
Lsb Industries 30.36% -3.66% -1.31%

Institutional & Insider Ownership

83.3% of Mosaic shares are owned by institutional investors. Comparatively, 69.8% of Lsb Industries shares are owned by institutional investors. 0.4% of Mosaic shares are owned by company insiders. Comparatively, 18.2% of Lsb Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Mosaic pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Lsb Industries does not pay a dividend. Mosaic pays out 545.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lsb Industries has increased its dividend for 2 consecutive years.

Risk and Volatility

Mosaic has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Lsb Industries has a beta of 4.61, suggesting that its share price is 361% more volatile than the S&P 500.

Summary

Mosaic beats Lsb Industries on 10 of the 16 factors compared between the two stocks.

Mosaic Company Profile

The Mosaic Company is a producer and marketer of concentrated phosphate and potash crop nutrients. The Company operates through three segments: Phosphates, Potash and International Distribution. The Company is a supplier of phosphate- and potash-based crop nutrients and animal feed ingredients. The Phosphates segment owns and operates mines and production facilities in Florida, which produce concentrated phosphate crop nutrients and phosphate-based animal feed ingredients, and processing plants in Louisiana, which produce concentrated phosphate crop nutrients. The Potash segment mines and processes potash in Canada and the United States, and sells potash in North America and internationally. The International Distribution segment markets phosphate-, potash- and nitrogen-based crop nutrients and animal feed ingredients, and provides other ancillary services to wholesalers, cooperatives, independent retailers and farmers in South America and the Asia-Pacific regions.

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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