Dow Inc. (DOW) vs Lsb Industries Inc. (LXU)

Dow Inc. and Lsb Industries Inc. are both Chemicals companies. Dow Inc. is the larger, with a market value of $25.1B against $829.5M — 30.3× the size. Dow Inc. has negative trailing earnings, so its P/E is not meaningful; Lsb Industries Inc. trades at 23.0×. Lsb Industries Inc. grew revenue faster over the last twelve months: 22.1% against −1.20%. Lsb Industries Inc. has the higher net margin (5.58% vs −3.13%) and the higher return on invested capital (5.12% vs −0.12%). Across the 20 metrics below, Lsb Industries Inc. leads on 17 and Dow Inc. on 3.

Valuation

Metric DOW LXU Chemicals median
P/E n/m 23.04 —
P/S 0.61 1.27 0.30
P/B 1.45 1.55 1.12
Price to free cash flow 14.98 8.57 8.08
EV/EBITDA 14.37 7.13 8.98
EV/Sales 0.94 1.61 0.76
Earnings yield (5.24%) 4.34% (10.35%)
Free cash flow yield 6.68% 11.66% 5.04%

Profitability

Metric DOW LXU Chemicals median
Gross margin 9.89% 17.32% 11.70%
Operating margin (0.15%) 9.53% (0.68%)
Net margin (3.13%) 5.58% (3.00%)
Free cash flow margin 4.06% 14.79% 1.50%
Return on equity (7.19%) 7.10% (3.61%)
Return on assets (2.14%) 3.12% (2.14%)
Return on invested capital (0.12%) 5.12% (0.12%)

Growth

Metric DOW LXU Chemicals median
Revenue growth (TTM) (1.20%) 22.12% 1.57%
EPS growth (last fiscal year) (335.67%) 225.93% (39.53%)
Revenue growth, 5-year CAGR 0.73% 11.86% 2.41%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DOW LXU Chemicals median
Debt to equity 1.03 0.83 0.71
Current ratio 1.75 2.43 1.75
Net debt to EBITDA 12.55 2.15 3.49

Dividend

Metric DOW LXU Chemicals median
Dividend yield 4.03% — 4.12%
Payout ratio — — —

Size

Metric DOW LXU Chemicals median
Market cap 25.12b 829.47m 744.75m

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