Cemex SAB de CV (CX) & Lafargeholcim (HCMLY) Financial Analysis

Cemex SAB de CV (NYSE:CX) and Lafargeholcim (OTCMKTS:HCMLY) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Cemex SAB de CV and Lafargeholcim, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cemex SAB de CV 0 6 5 0 2.45
Lafargeholcim 2 1 3 0 2.17

Cemex SAB de CV presently has a consensus target price of $8.86, indicating a potential upside of 77.85%. Given Cemex SAB de CV’s stronger consensus rating and higher probable upside, equities analysts clearly believe Cemex SAB de CV is more favorable than Lafargeholcim.

Valuation and Earnings

This table compares Cemex SAB de CV and Lafargeholcim’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cemex SAB de CV $13.67 billion 0.53 $806.71 million $0.41 12.15
Lafargeholcim $26.55 billion 0.96 -$1.70 billion $0.48 17.54

Cemex SAB de CV has higher earnings, but lower revenue than Lafargeholcim. Cemex SAB de CV is trading at a lower price-to-earnings ratio than Lafargeholcim, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

34.3% of Cemex SAB de CV shares are owned by institutional investors. Comparatively, 0.1% of Lafargeholcim shares are owned by institutional investors. 1.0% of Cemex SAB de CV shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Lafargeholcim pays an annual dividend of $0.37 per share and has a dividend yield of 4.4%. Cemex SAB de CV does not pay a dividend. Lafargeholcim pays out 77.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Cemex SAB de CV and Lafargeholcim’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cemex SAB de CV 3.38% 4.24% 1.62%
Lafargeholcim N/A N/A N/A

Volatility & Risk

Cemex SAB de CV has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Lafargeholcim has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Summary

Cemex SAB de CV beats Lafargeholcim on 11 of the 16 factors compared between the two stocks.

Cemex SAB de CV Company Profile

CEMEX, S.A.B. de C.V., together with its subsidiaries, produces, markets, distributes, and sells cement, ready-mix concrete, aggregates, clinker, and other construction materials. The company also offers various complementary construction products, including asphalt products; concrete blocks and roof tiles; architectural products; concrete pipes for storm and sanitary sewers applications; and other precast products comprising rail products, concrete floors, box culverts, bridges, drainage basins, barriers, and parking curbs. In addition, it provides building solutions for housing projects, pavement projects, and green building consultancy services; and information technology solutions. The company has operations in Mexico; the United States; Europe; South and Central America, and the Caribbean; Asia, the Middle East, and Africa; and internationally. CEMEX, S.A.B. de C.V. was founded in 1906 and is based in San Pedro Garza García, Mexico.

Lafargeholcim Company Profile

LafargeHolcim Ltd operates as a building materials and solutions company worldwide. It operates in four segments: Cement, Aggregates, Ready-mix Concrete, and Solutions & Products. The company offers cement, clinker, and other cementitious materials; aggregates, such as crushed stone, gravel, and sand; ready-mix concrete, concrete products, asphalt, and other products and services; and construction and paving, and trading services. Its products are used in infrastructure projects, such as transport, roads, energy, and sports and cultural facilities, as well as in the mining industry; and building projects comprising individual housing, collective housing, office buildings, industrial and commercial buildings, and institutional buildings. The company also provides its products for affordable housing, distribution and retail, and oil and gas industries. The company was formerly known as Holcim Ltd. and changed its name to LafargeHolcim Ltd in July 2015. LafargeHolcim Ltd was founded in 1833 and is headquartered in Jona, Switzerland.

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