Analyzing Linde (LIN) and LSB Industries (LXU)

Linde (NYSE:LIN) and LSB Industries (NYSE:LXU) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.

Profitability

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

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

Analyst Ratings

This is a summary of recent ratings for Linde and LSB Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Linde 1 4 5 0 2.40
LSB Industries 0 0 0 0 N/A

Linde presently has a consensus price target of $181.50, indicating a potential upside of 14.12%. Given Linde’s higher probable upside, analysts plainly believe Linde is more favorable than LSB Industries.

Earnings & Valuation

This table compares Linde and LSB Industries’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Linde $11.44 billion 4.00 $1.25 billion $5.85 27.19
LSB Industries $427.50 million 0.51 -$29.21 million N/A N/A

Linde has higher revenue and earnings than LSB Industries.

Insider & Institutional Ownership

86.3% of Linde shares are held by institutional investors. Comparatively, 57.1% of LSB Industries shares are held by institutional investors. 45.9% of Linde shares are held by company insiders. Comparatively, 22.6% of LSB Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Linde pays an annual dividend of $3.30 per share and has a dividend yield of 2.1%. LSB Industries does not pay a dividend. Linde pays out 56.4% of its earnings in the form of a dividend.

Volatility & Risk

Linde has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, LSB Industries has a beta of 4.53, indicating that its share price is 353% more volatile than the S&P 500.

Summary

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

About Linde

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.

About LSB Industries

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.

Receive News & Ratings for Linde Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Linde and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply