Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, climate control and chemical company LSB Industries (NYSE:LXU) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at LSB's business, and see what CAPS investors are saying about the stock right now.

LSB facts 

Headquarters (founded)

Oklahoma City (1968)

Market Cap

$159.8 million


Diversified chemicals

TTM Revenue

$704.1 million


Founder/CEO Jack Golsen
CFO Tony Shelby

Return on Equity (average, last three years)



PotashCorp (NYSE:POT)
CF Industries (NYSE:CF)
Terra Industries (NYSE:TRA)

CAPS members bullish on LXU also bullish on:

General Electric (NYSE:GE)

CAPS members bearish on LXU also bearish on:

Microsoft (NASDAQ:MSFT)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, some 97% of the 566 members who have rated LSB believe the stock will outperform the S&P 500 going forward. These bulls include devoish, who is ranked in the top 1% of our community, and TSIF.

Last month, devoish cited heavy insider buying (mainly by CEO Jack Golsen) as reason to take a closer look: "Half a million shares bought by insiders between Nov 2008 and Jan 2009. Thats a little more than 2% of outstanding shares."

In a pitch from earlier this month, TSIF expands on that bullish argument:

Small company, but an excellent play on the "stimulating plan"... Low P/E. (ROE of 34%) ... LSB sells geothermal and water source heat pumps and air handling products, as well as chemical products worldwide. While its chemical products group may be a little off, the rest plays great on the credits in the infrastructure plan. ... The updates to government buildings plays right into LSB Industries. Definitely a small-cap worth keeping an eye on, and in my case a few real shares.

What do you think about LSB, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick. Microsoft is a recommendation of Inside Value. The Fool's disclosure policy always gets a perfect score.