Corteva (NYSE:CTVA – Get Free Report) and Lsb Industries (NYSE:LXU – Get Free Report) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Profitability
This table compares Corteva and Lsb Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Corteva | 5.66% | 10.18% | 6.00% |
| Lsb Industries | 6.95% | 8.51% | 3.82% |
Risk and Volatility
Corteva has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500. Comparatively, Lsb Industries has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Corteva and Lsb Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Corteva | 1 | 6 | 16 | 0 | 2.65 |
| Lsb Industries | 0 | 5 | 1 | 0 | 2.17 |
Corteva presently has a consensus price target of $60.59, indicating a potential upside of 415.45%. Lsb Industries has a consensus price target of $13.38, indicating a potential upside of 18.68%. Given Corteva’s stronger consensus rating and higher probable upside, analysts clearly believe Corteva is more favorable than Lsb Industries.
Institutional and Insider Ownership
81.5% of Corteva shares are owned by institutional investors. Comparatively, 73.7% of Lsb Industries shares are owned by institutional investors. 0.2% of Corteva shares are owned by insiders. Comparatively, 3.0% of Lsb Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Corteva and Lsb Industries”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Corteva | $17.81 billion | 0.44 | $1.09 billion | $1.51 | 7.78 |
| Lsb Industries | $615.21 million | 1.32 | $24.61 million | $0.62 | 18.18 |
Corteva has higher revenue and earnings than Lsb Industries. Corteva is trading at a lower price-to-earnings ratio than Lsb Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Corteva beats Lsb Industries on 10 of the 14 factors compared between the two stocks.
About Corteva
Corteva, Inc. operates in the agriculture business. It operates through two segments, Seed and Crop Protection. The Seed segment develops and supplies advanced germplasm and traits that produce optimum yield for farms. It offers trait technologies that enhance resistance to weather, disease, insects, and herbicides used to control weeds, as well as food and nutritional characteristics. This segment also provides digital solutions that assist farmer decision-making with a view to optimize product selection, and maximize yield and profitability. The Crop Protection segment offers products that protect against weeds, insects and other pests, and diseases, as well as enhances crop health above and below ground through nitrogen management and seed-applied technologies. This segment provides herbicides, insecticides, nitrogen stabilizers, and pasture and range management herbicides. It serves agricultural input industry. The company operates in the United States, Canada, Latin America, the Asia Pacific, Europe, the Middle East, and Africa. Corteva, Inc. was incorporated in 2018 and is headquartered in Indianapolis, Indiana.
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.
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