Both of these black or very dark gray minerals look quite similar. They are shiny, similar in color and both made of iron oxide - magnetite. Both have healing properties, although the magnetic effect is associated with lodestone. I will discuss each mineral separately which should give you a good overview of the differences and similarities.
Lodestone is magnetic when found in nature. It was commonly used in the manufacture of compasses, because of these magnetic properties. Hematite, on the other hand, is not magnetic by nature.
What we have come to think of as magnetic hematite is actually a synthetic material called synthetic Hematite or hemalyke. This synthetic material is created with magnetism - thus the confusion between the two types of minerals.
Both minerals have healing and mystical properties. For more information on the two minerals, please visit the hematite article in the resource library at Vintage Jewelry Lane.