Head to Head Contrast: Lsb Industries (NYSE:LXU) vs. Northern Technologies International (NASDAQ:NTIC)

Lsb Industries (NYSE:LXU) and Northern Technologies International (NASDAQ:NTIC) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.

Volatility and Risk

Lsb Industries has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.27, indicating that its share price is 73% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lsb Industries	-6.15%	-0.34%	-0.14%
Northern Technologies International	3.46%	3.38%	2.66%

Analyst Recommendations

This is a summary of recent ratings and price targets for Lsb Industries and Northern Technologies International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lsb Industries	0	1	2	0	2.67
Northern Technologies International	0	0	0	0	0.00

Lsb Industries currently has a consensus price target of $9.75, indicating a potential upside of 25.24%. Given Lsb Industries’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Lsb Industries is more favorable than Northern Technologies International.

Institutional and Insider Ownership

73.7% of Lsb Industries shares are held by institutional investors. Comparatively, 32.9% of Northern Technologies International shares are held by institutional investors. 4.7% of Lsb Industries shares are held by insiders. Comparatively, 24.3% of Northern Technologies International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Lsb Industries and Northern Technologies International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lsb Industries	$522.40 million	1.07	-$19.35 million	($0.46)	-16.92
Northern Technologies International	$85.27 million	0.83	$5.41 million	$0.30	24.97

Northern Technologies International has lower revenue, but higher earnings than Lsb Industries. Lsb Industries is trading at a lower price-to-earnings ratio than Northern Technologies International, indicating that it is currently the more affordable of 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 Northern Technologies International

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.