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BHP vs LXU

BHP
BHP Group Limited
NEUTRAL
Price
$67.52
Market Cap
$173.45B
Sector
Basic Materials
AI Confidence
72%
LXU
LSB Industries, Inc.
NEUTRAL
Price
$15.20
Market Cap
$1.09B
Sector
Basic Materials
AI Confidence
85%

Valuation

P/E Ratio
BHP
19.07
LXU
44.71
Forward P/E
BHP
15.45
LXU
12.58
P/B Ratio
BHP
7.19
LXU
2.1
P/S Ratio
BHP
3.38
LXU
1.78
EV/EBITDA
BHP
15.39
LXU
9.89

Profitability

Gross Margin
BHP
82.21%
LXU
16.95%
Operating Margin
BHP
37.7%
LXU
18.25%
Profit Margin
BHP
17.59%
LXU
4.0%
ROE
BHP
21.99%
LXU
4.87%
ROA
BHP
11.02%
LXU
3.37%

Growth

Revenue Growth
BHP
-8.2%
LXU
22.3%
Earnings Growth
BHP
-34.0%
LXU
--

Financial Health

Debt/Equity
BHP
0.49
LXU
0.96
Current Ratio
BHP
1.46
LXU
2.78
Quick Ratio
BHP
1.06
LXU
1.95

Dividends

Dividend Yield
BHP
3.26%
LXU
--
Payout Ratio
BHP
69.9%
LXU
0.0%

AI Verdict

BHP NEUTRAL

BHP's Piotroski F-Score of 6/9 indicates stable financial health, but the absence of an Altman Z-Score limits distress risk assessment. The stock trades significantly above its Graham Number of $27.35 and intrinsic value of $24.78, reflecting a substantial premium. Despite strong profitability metrics like 37.7% operating margin and 21.99% ROE, earnings and revenue growth are sharply negative year-over-year. Analysts consensus is a hold with a $57.00 target, below current price, suggesting limited upside.

Strengths
High operating margin of 37.70% indicates strong cost control and pricing power
ROE of 21.99% exceeds sector average significantly, signaling efficient equity use
Debt/Equity of 0.49 is below sector average of 0.63, indicating conservative leverage
Risks
Revenue growth down 8.20% YoY and earnings down 34.00%, indicating deteriorating fundamentals
P/E of 19.07 is high relative to earnings contraction, increasing valuation risk
Price/Book of 7.19 is extremely elevated, suggesting overvaluation relative to book value
LXU NEUTRAL

LXU exhibits a stable financial foundation with a Piotroski F-Score of 6/9, though it currently trades at a significant premium to its Graham Number ($7.45) and Intrinsic Value ($2.38). While explosive earnings growth (YoY EPS +211.1%) and a low PEG ratio (0.42) suggest strong future potential, these are heavily offset by aggressive insider selling totaling $77.79M. The disconnect between the bullish analyst consensus and the bearish insider sentiment and technical trend creates a high-risk profile despite the strong revenue growth.

Strengths
Strong revenue growth (YoY 22.30%)
Attractive Forward P/E (12.58) relative to trailing P/E
Very low PEG ratio (0.42) indicating growth is undervalued
Risks
Heavy insider liquidation ($77.79M in sales, 0 buys)
Significant valuation gap between current price ($15.20) and Graham Number ($7.45)
Low Return on Equity (ROE) of 4.87%

Compare Another Pair

BHP vs LXU: Head-to-Head Comparison

This page compares BHP Group Limited (BHP) and LSB Industries, Inc. (LXU) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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