Head to Head Analysis: Lsb Industries (NYSE:LXU) vs. Midwest Energy Emissions (OTCMKTS:MEEC)

Midwest Energy Emissions (OTCMKTS:MEEC) and Lsb Industries (NYSE:LXU) are both small-cap materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.

Risk & Volatility

Midwest Energy Emissions has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Lsb Industries has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Profitability

This table compares Midwest Energy Emissions and Lsb Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Midwest Energy Emissions	-3.40%	N/A	-129.96%
Lsb Industries	5.58%	6.98%	3.10%

Valuation and Earnings

This table compares Midwest Energy Emissions and Lsb Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Midwest Energy Emissions	$17.94 million	14.20	$5.90 million	$0.04	67.50
Lsb Industries	$615.21 million	1.18	$24.61 million	$0.50	20.12

Lsb Industries has higher revenue and earnings than Midwest Energy Emissions. Lsb Industries is trading at a lower price-to-earnings ratio than Midwest Energy Emissions, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

9.9% of Midwest Energy Emissions shares are owned by institutional investors. Comparatively, 73.7% of Lsb Industries shares are owned by institutional investors. 31.0% of Midwest Energy Emissions shares are owned by insiders. Comparatively, 3.0% of Lsb Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Midwest Energy Emissions and Lsb Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Midwest Energy Emissions	0	0	0	0	0.00
Lsb Industries	0	4	1	0	2.20

Lsb Industries has a consensus target price of $14.67, suggesting a potential upside of 45.79%. Given Lsb Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Lsb Industries is more favorable than Midwest Energy Emissions.

Summary

Lsb Industries beats Midwest Energy Emissions on 11 of the 14 factors compared between the two stocks.

About Midwest Energy Emissions

Midwest Energy Emissions Corp., an environmental services and technology company, engages in developing and delivering solutions to the power industry in the United States and internationally. It provides mercury capture solutions. Its Sorbent Enhancement Additive (SEA) technology provides total mercury control with solutions that are based on a thorough scientific understanding of actual and probable interactions involved in mercury capture in coal-fired flue gas. The company also involved in the extracting and processing of rare earth elements. Midwest Energy Emissions Corp. is headquartered in Corsicana, Texas.

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.