Gulf Resources (NASDAQ:GURE – Get Free Report) and Lsb Industries (NYSE:LXU – Get Free Report) 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 risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Earnings & Valuation
This table compares Gulf Resources and Lsb Industries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gulf Resources | $7.66 million | 0.66 | -$58.94 million | ($48.05) | -0.08 |
| Lsb Industries | $522.40 million | 1.17 | -$19.35 million | ($0.01) | -848.00 |
Analyst Recommendations
This is a summary of recent recommendations for Gulf Resources and Lsb Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gulf Resources | 1 | 0 | 0 | 0 | 1.00 |
| Lsb Industries | 1 | 1 | 2 | 0 | 2.25 |
Lsb Industries has a consensus price target of $9.83, suggesting a potential upside of 15.96%. Given Lsb Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Lsb Industries is more favorable than Gulf Resources.
Profitability
This table compares Gulf Resources and Lsb Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gulf Resources | -286.77% | -20.62% | -17.50% |
| Lsb Industries | -0.11% | 2.70% | 1.16% |
Risk and Volatility
Gulf Resources has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Lsb Industries has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.
Insider & Institutional Ownership
3.3% of Gulf Resources shares are owned by institutional investors. Comparatively, 73.7% of Lsb Industries shares are owned by institutional investors. 3.2% of Gulf Resources shares are owned by insiders. Comparatively, 4.3% of Lsb Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Lsb Industries beats Gulf Resources on 13 of the 14 factors compared between the two stocks.
About Gulf Resources
Gulf Resources, Inc., through its subsidiaries, manufactures and trades bromine and crude salt, chemical products, and natural gas in the People’s Republic of China. The company operates through four segments: Bromine, Crude salt, Chemical products, and Natural gas segments. It also provides bromine for use in bromine compounds, intermediates in organic synthesis, brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants. In addition, the company offers crude salt for use as a material in alkali and chlorine alkali production for use in the chemical, food and beverage, and other industries. In addition, it manufactures and sells chemical products for use in oil and gas field exploration, oil and gas distribution, oil field drilling, papermaking chemical agents, and inorganic chemicals, as well as materials that are used for human and animal antibiotics. The company is based in Shouguang, the People’s Republic of China.
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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