Cementos Pacasmayo S.A.A. (NYSE:CPAC) & Martin Marietta Materials (NYSE:MLM) Critical Contrast

Cementos Pacasmayo S.A.A. (NYSE:CPAC) and Martin Marietta Materials (NYSE:MLM) are both construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Profitability

This table compares Cementos Pacasmayo S.A.A. and Martin Marietta Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cementos Pacasmayo S.A.A.	10.10%	15.87%	6.29%
Martin Marietta Materials	16.07%	12.01%	6.39%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cementos Pacasmayo S.A.A. and Martin Marietta Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cementos Pacasmayo S.A.A.	1	1	0	0	1.50
Martin Marietta Materials	0	3	12	2	2.94

Cementos Pacasmayo S.A.A. currently has a consensus target price of $6.20, indicating a potential upside of 2.31%. Martin Marietta Materials has a consensus target price of $603.86, indicating a potential upside of 7.23%. Given Martin Marietta Materials’ stronger consensus rating and higher probable upside, analysts clearly believe Martin Marietta Materials is more favorable than Cementos Pacasmayo S.A.A..

Institutional & Insider Ownership

95.0% of Martin Marietta Materials shares are owned by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are owned by insiders. Comparatively, 0.7% of Martin Marietta Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Cementos Pacasmayo S.A.A. pays an annual dividend of $0.50 per share and has a dividend yield of 8.3%. Martin Marietta Materials pays an annual dividend of $3.16 per share and has a dividend yield of 0.6%. Cementos Pacasmayo S.A.A. pays out 84.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Martin Marietta Materials pays out 18.2% of its earnings in the form of a dividend. Martin Marietta Materials has increased its dividend for 9 consecutive years.

Volatility & Risk

Cementos Pacasmayo S.A.A. has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Martin Marietta Materials has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Valuation & Earnings

This table compares Cementos Pacasmayo S.A.A. and Martin Marietta Materials”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cementos Pacasmayo S.A.A.	$2.00 billion	0.26	$53.00 million	$0.59	10.27
Martin Marietta Materials	$6.54 billion	5.19	$2.00 billion	$17.36	32.44

Martin Marietta Materials has higher revenue and earnings than Cementos Pacasmayo S.A.A.. Cementos Pacasmayo S.A.A. is trading at a lower price-to-earnings ratio than Martin Marietta Materials, indicating that it is currently the more affordable of the two stocks.

Summary

Martin Marietta Materials beats Cementos Pacasmayo S.A.A. on 16 of the 18 factors compared between the two stocks.

About Cementos Pacasmayo S.A.A.

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in Peru. It operates through three segments: Cement, Concrete, Mortar and Precast; Quicklime; and Sales of Construction Supplies. The company’s cement and concrete products are used in residential and commercial construction, and civil engineering; ready-mix concrete used in construction sites; concrete precast, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete precast for structural and non-structural uses; and cement-based products. It also produces and distributes quicklime for use in steel, food, fishing, and chemical industries. In addition, the company sells and distributes other construction materials manufactured by third parties, such as steel rebar, plastic pipes, and electrical wires. It offers its products directly to other retailers, private construction companies, and government entities through a network of independent retailers and hardware stores. The company was incorporated in 1949 and is headquartered in Lima, Peru. Cementos Pacasmayo S.A.A. is a subsidiary of Inversiones ASPI S.A.

About Martin Marietta Materials

Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally. It offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; and Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. The company also produces magnesia-based chemicals products; dolomitic lime primarily to customers for steel production and soil stabilization; and cement treated materials. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. The company was founded in 1939 and is headquartered in Raleigh, North Carolina.