Comparing International Flavors & Fragrances (NYSE:IFF) and Lsb Industries (NYSE:LXU)

Lsb Industries (NYSE:LXU) and International Flavors & Fragrances (NYSE:IFF) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Volatility and Risk

Lsb Industries has a beta of 0.31, indicating that its share price is 69% less volatile than the S&P 500. Comparatively, International Flavors & Fragrances has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Insider and Institutional Ownership

73.7% of Lsb Industries shares are held by institutional investors. Comparatively, 96.0% of International Flavors & Fragrances shares are held by institutional investors. 3.0% of Lsb Industries shares are held by company insiders. Comparatively, 1.1% of International Flavors & Fragrances shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Lsb Industries and International Flavors & Fragrances’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lsb Industries	5.58%	6.98%	3.10%
International Flavors & Fragrances	2.78%	7.11%	3.96%

Valuation and Earnings

This table compares Lsb Industries and International Flavors & Fragrances”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	$658.06 million	1.25	$24.61 million	$0.50	22.77
International Flavors & Fragrances	$10.78 billion	2.03	-$361.00 million	$1.09	78.71

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Lsb Industries and International Flavors & Fragrances, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lsb Industries	0	4	1	0	2.20
International Flavors & Fragrances	1	5	12	0	2.61

Lsb Industries currently has a consensus price target of $14.67, suggesting a potential upside of 28.82%. International Flavors & Fragrances has a consensus price target of $91.40, suggesting a potential upside of 6.54%. Given Lsb Industries’ higher possible upside, equities research analysts plainly believe Lsb Industries is more favorable than International Flavors & Fragrances.

Summary

International Flavors & Fragrances beats Lsb Industries on 10 of the 14 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 International Flavors & Fragrances

International Flavors & Fragrances, Inc. engages in the manufacture and supply of flavors and fragrances used in the food, beverage, personal care, and household products industries. It operates through the following segments: Nourish, Health & Biosciences, Scent and Pharma Solutions. The Nourish segment consists of legacy Taste segment combined with N&B’s Food & Beverage division and the food protection business of N&B’s Health & Biosciences division. The Health & Biosciences business consists of a biotechnology-driven portfolio of enzymes, food cultures, probiotics and specialty ingredients for food, home and personal care, and health and wellness applications. The Scent business creates fragrance compounds, fragrance ingredients and cosmetic ingredients that are integral elements in the world’s finest perfumes and best-known household and personal care products. The Pharma Solutions business produces a vast portfolio including cellulosics and seaweed-based pharma excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling. The company was founded in 1833 and is headquartered in New York, NY.