Critical Review: Lsb Industries (NYSE:LXU) & Geltech Solutions (OTCMKTS:GLTC)

Geltech Solutions (OTCMKTS:GLTC) and Lsb Industries (NYSE:LXU) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, analyst recommendations, dividends and valuation.

Institutional and Insider Ownership

73.7% of Lsb Industries shares are held by institutional investors. 61.8% of Geltech Solutions 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, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Geltech Solutions and Lsb Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Geltech Solutions	0	0	0	0	0.00
Lsb Industries	0	5	0	0	2.00

Lsb Industries has a consensus price target of $15.33, suggesting a potential upside of 44.49%. Given Lsb Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Lsb Industries is more favorable than Geltech Solutions.

Profitability

This table compares Geltech Solutions and Lsb Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Geltech Solutions	N/A	N/A	N/A
Lsb Industries	7.16%	8.91%	3.96%

Valuation and Earnings

This table compares Geltech Solutions and Lsb Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Geltech Solutions	N/A	N/A	N/A	N/A	N/A
Lsb Industries	$615.21 million	1.24	$24.61 million	$0.63	16.84

Lsb Industries has higher revenue and earnings than Geltech Solutions.

Summary

Lsb Industries beats Geltech Solutions on 7 of the 8 factors compared between the two stocks.

About Geltech Solutions

GelTech Solutions, Inc. is a product innovation company, which specializes in environmentally-friendly chemicals and products that reduce costs associated with fighting fire, protecting assets, water retention and improving ROI for its customers. Its product lines include chemicals and equipment designed for use in wildland and municipal fire management, as well as industrial, agriculture, commercial, and personal home applications. Its products include: FireIce, is a water soluble fire retardant used to protect structures, personal property and forest wildfires; Soil2O Dust Control is effective at controlling airborne particulate matter while substantially reducing water usage on traffic areas; and Soil2O Soil Cap, a product which is effective at controlling dust and erosion of non-traffic and storage areas. The company was founded by Michael Cordani, Joseph Ingarra and Peter Cordani on July 19, 2006 and is headquartered in Jupiter, FL.

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.