Head to Head Review: Lsb Industries (LXU) versus Terra Nitrogen Company, L.P. (TNH)
Lsb Industries (NYSE: LXU) and Terra Nitrogen Company, L.P. (NYSE:TNH) 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 institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.
Valuation & Earnings
This table compares Lsb Industries and Terra Nitrogen Company, L.P.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Lsb Industries||$411.83 million||0.46||$14.20 million||$2.07||3.24|
|Terra Nitrogen Company, L.P.||$398.10 million||3.67||$196.10 million||$6.47||12.09|
Terra Nitrogen Company, L.P. has higher revenue, but lower earnings than Lsb Industries. Lsb Industries is trading at a lower price-to-earnings ratio than Terra Nitrogen Company, L.P., indicating that it is currently the more affordable of the two stocks.
Terra Nitrogen Company, L.P. pays an annual dividend of $6.40 per share and has a dividend yield of 8.2%. Lsb Industries does not pay a dividend. Terra Nitrogen Company, L.P. pays out 98.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current ratings and price targets for Lsb Industries and Terra Nitrogen Company, L.P., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Terra Nitrogen Company, L.P.||0||0||0||0||N/A|
Volatility & Risk
Lsb Industries has a beta of 4.52, meaning that its stock price is 352% more volatile than the S&P 500. Comparatively, Terra Nitrogen Company, L.P. has a beta of 0.06, meaning that its stock price is 94% less volatile than the S&P 500.
Institutional & Insider Ownership
70.2% of Lsb Industries shares are owned by institutional investors. Comparatively, 3.4% of Terra Nitrogen Company, L.P. shares are owned by institutional investors. 25.8% of Lsb Industries shares are owned by company insiders. Comparatively, 2.0% of Terra Nitrogen Company, L.P. shares are owned 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.
This table compares Lsb Industries and Terra Nitrogen Company, L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Terra Nitrogen Company, L.P.||38.78%||43.15%||39.71%|
Terra Nitrogen Company, L.P. beats Lsb Industries on 8 of the 13 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.
Terra Nitrogen Company, L.P. Company Profile
Terra Nitrogen Company, L.P. (TNCLP) is a limited partnership that produces nitrogen fertilizer products. The Company’s principal products are anhydrous ammonia (ammonia) and urea ammonium nitrate solutions (UAN), which it manufactures at its facility in Verdigris, Oklahoma. Its nitrogen products are used primarily by farmers. For the year ended December 31, 2016, it had sold 2.2 million tons of nitrogen fertilizers. The Company has production facility, in Verdigris, Oklahoma. As of December 31, 2016, it had two ammonia plants, two nitric acid plants and two UAN plants. The Company conducts its operations through an operating partnership, Terra Nitrogen, Limited Partnership (TNLP). Terra Nitrogen GP Inc. is the general partner of both TNCLP and TNLP and owns a 0.025% general partner interest in each of TNCLP and TNLP. The General Partner is an indirect subsidiary of CF Industries Holdings, Inc., which is engaged in the manufacturing and distribution of nitrogen products.
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