Tokuyama (OTCMKTS:TKYMY) versus Lsb Industries (NYSE:LXU) Critical Survey

Lsb Industries (NYSE:LXU) and Tokuyama (OTCMKTS:TKYMY) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

73.7% of Lsb Industries shares are held by institutional investors. 4.7% of Lsb Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Lsb Industries has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, Tokuyama has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lsb Industries and Tokuyama, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lsb Industries	1	1	1	1	2.50
Tokuyama	0	0	0	0	0.00

Lsb Industries presently has a consensus target price of $10.25, indicating a potential upside of 8.97%. Given Lsb Industries’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Lsb Industries is more favorable than Tokuyama.

Valuation and Earnings

This table compares Lsb Industries and Tokuyama”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lsb Industries	$522.40 million	1.30	-$19.35 million	($0.01)	-940.60
Tokuyama	$2.25 billion	0.83	$154.35 million	$1.17	11.09

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lsb Industries	-0.11%	2.70%	1.16%
Tokuyama	7.42%	9.06%	5.09%

Summary

Lsb Industries beats Tokuyama on 8 of the 15 factors compared between the two stocks.

About Lsb Industries

LSB Industries, Inc. engages in the manufacture, marketing, and sale of chemical products. The company provides nitrogen-based fertilizers, such as ammonia, fertilizer grade high density ammonium nitrate (HDAN), and urea ammonia nitrate for fertilizer for corn, pastures, and other crops, as well as nitrogen, phosphorus, and potassium (NPK) fertilizer blends application. It 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, and blended and regular nitric acids for various applications, including semiconductor, nylon, and polyurethane intermediates, ammonium nitrate, and metal processing; chemical feedstocks, emissions abatement, water treatments, and refrigerants; pulp and paper, aluminum, water treatment, metals, and vanadium processing; abatement for diesel vehicles; and food refrigeration, dry ice, and enhanced oil recovery. In addition, the company provides industrial grade and low density ammonium nitrate, and ammonium nitrate for explosives mining, quarries, and other blasting activities. It sells its products through distributors, as well as directly to end customers in the United States and other parts of North America. The company serves to the agricultural, industrial, and mining markets. LSB Industries, Inc. was incorporated in 1968 and is headquartered in Oklahoma City, Oklahoma.

About Tokuyama

Tokuyama Corporation produces and sells various chemical products in Japan. The company operates through six segments: Chemicals, Cement, Electronics and Advanced Materials, Life Science, Eco Business, and Others. The Chemicals segment offers caustic soda, soda ash, calcium chloride, sodium silicate cullet, sodium bicarbonate, purified, vinyl chloride monomer, polyvinyl chloride resin, propylene oxide, methylene chloride, and chloroform. The Cement segment provides cement, ready-mixed concrete, and cement-type stabilizer, as well as engages in the resource recycling business. The Electronic and Advanced Materials segment provides polycrystalline silicon; fumed silica and tetrachlorosilane; aluminum nitride; high-purity chemicals for electronics manufacturing and photoresist developer; and isopropyl alcohol. The Life Science segment provides medical diagnosis systems, dental materials and equipment, pharmaceutical ingredients and intermediates, plastic lens-related materials for glasses, and microporous film. The Eco Business segment offers plastic window sashes, ion exchange membranes, as well as engages in waste gypsum board recycling activity. The company was formerly known as Tokuyama Soda Co., Ltd. and changed its name to Tokuyama Corporation in April 1994. Tokuyama Corporation was incorporated in 1918 and is headquartered in Tokyo, Japan.