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

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.

Analyst Ratings

This is a breakdown of recent ratings for Lsb Industries and Rentech Nitrogen Partners, as provided by MarketBeat.

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

Profitability

This table compares Lsb Industries and Rentech Nitrogen Partners’ net margins, return on equity and return on assets.

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

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lsb Industries $374.58 million 0.67 $112.16 million ($2.98) -2.97
Rentech Nitrogen Partners N/A N/A N/A ($2.62) -4.35

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.

Insider and Institutional Ownership

66.1% of Lsb Industries shares are held by institutional investors. 25.8% of Lsb Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

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

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.

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.

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