Comparing Flexible Solutions International (NYSE:FSI) and Lsb Industries (NYSE:LXU)
by Mitch Edgeman · The Markets DailyFlexible Solutions International (NYSE:FSI – Get Free Report) and Lsb Industries (NYSE:LXU – Get Free Report) are both small-cap materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
54.3% of Flexible Solutions International shares are held by institutional investors. Comparatively, 73.7% of Lsb Industries shares are held by institutional investors. 35.0% of Flexible Solutions International shares are held by company insiders. Comparatively, 3.0% of Lsb Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Flexible Solutions International has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Lsb Industries has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Flexible Solutions International and Lsb Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Flexible Solutions International | 0 | 1 | 0 | 1 | 3.00 |
| Lsb Industries | 0 | 4 | 1 | 0 | 2.20 |
Lsb Industries has a consensus price target of $14.67, suggesting a potential upside of 42.05%. Given Lsb Industries’ higher probable upside, analysts plainly believe Lsb Industries is more favorable than Flexible Solutions International.
Valuation and Earnings
This table compares Flexible Solutions International and Lsb Industries”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Flexible Solutions International | $35.58 million | 2.26 | $2.78 million | ($0.24) | -26.25 |
| Lsb Industries | $658.06 million | 1.13 | $24.61 million | $0.50 | 20.65 |
Lsb Industries has higher revenue and earnings than Flexible Solutions International. Flexible Solutions International is trading at a lower price-to-earnings ratio than Lsb Industries, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Flexible Solutions International and Lsb Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Flexible Solutions International | 10.80% | 10.61% | 7.32% |
| Lsb Industries | 5.58% | 6.98% | 3.10% |
Summary
Flexible Solutions International beats Lsb Industries on 8 of the 15 factors compared between the two stocks.
About Flexible Solutions International
Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water in Canada, the United States, and internationally. The company operates in two segments, Energy and Water Conservation Products, and Biodegradable Polymers. The company offers thermal polyaspartates (TPAs) for oilfields to reduce scale and corrosion in various water systems; and for the agricultural industry to reduce fertilizer crystallization before, during, and after application, as well as to prevent crystal formation between fertilizer and minerals present in the soil. It also provides TPAs for irrigation to prevent early plugging of drip irrigation ports, reduce maintenance costs, and lengthen the life of equipment; TPAs for cleaning products to prevents the re-deposition of dirt onto the surfaces; and TPAs as additives for household laundry detergents, consumer care products, and pesticides. In addition, the company offers nitrogen conservation products for agriculture that slow down nitrogen loss from fields. Further, it provides HEATSAVR, a chemical product for use in swimming pools and spas that forms a thin and transparent layer on the water's surface; and WATERSAVR to reduce water evaporation in reservoirs, potable water storage tanks, livestock watering ponds, aqueducts, canals, and irrigation ditches, as well as for lawn and turf care, and potted and bedding plants. The company was incorporated in 1991 and is headquartered in Taber, Canada.
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.