Critical Review: China Resources Cement (OTCMKTS:CARCY) versus Anhui Conch Cement (OTCMKTS:AHCHY)

China Resources Cement (OTCMKTS:CARCY) and Anhui Conch Cement (OTCMKTS:AHCHY) are both construction companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Volatility & Risk

China Resources Cement has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Anhui Conch Cement has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for China Resources Cement and Anhui Conch Cement, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Resources Cement	0	0	0	0	0.00
Anhui Conch Cement	0	0	0	1	4.00

Valuation & Earnings

This table compares China Resources Cement and Anhui Conch Cement”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Resources Cement	$3.20 billion	N/A	$29.33 million	$0.19	38.95
Anhui Conch Cement	$12.66 billion	N/A	$1.12 billion	$1.11	14.31

Anhui Conch Cement has higher revenue and earnings than China Resources Cement. Anhui Conch Cement is trading at a lower price-to-earnings ratio than China Resources Cement, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares China Resources Cement and Anhui Conch Cement’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Resources Cement	1.48%	0.73%	0.46%
Anhui Conch Cement	9.56%	4.26%	3.38%

Dividends

China Resources Cement pays an annual dividend of $0.06 per share and has a dividend yield of 0.8%. Anhui Conch Cement pays an annual dividend of $0.37 per share and has a dividend yield of 2.3%. China Resources Cement pays out 31.6% of its earnings in the form of a dividend. Anhui Conch Cement pays out 33.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Anhui Conch Cement beats China Resources Cement on 10 of the 12 factors compared between the two stocks.

About China Resources Cement

China Resources Building Materials Technology Holdings Limited, an investment holding company, manufactures and sells cement, concrete, aggregates, and related products and services in Mainland China. It operates through Cement, Concrete, and Aggregates and Others segments. The company engages in the excavation of limestone; and production, sale, and distribution of cement, clinker, and concrete. The company's products are used in the construction of infrastructure projects, such as railways, highways, subways, bridges, airports, ports, dams, and hydroelectric and nuclear power stations, as well as high-rise buildings, and suburban and rural area development. It also engages in the manufacture and sale of engineered and natural stones, and other products; prefabricated construction materials; mining of aggregates; marine transportation activities; provides environmental protection engineering, and warehouse management and fuel supply services; and offers building materials testing and consultancy services. In addition, the company trades in steel pipes, aggregates, and construction materials; and holds properties. The company was formerly known as China Resources Cement Holdings Limited and changed its name to China Resources Building Materials Technology Holdings Limited in November 2023. The company was founded in 1998 and is headquartered in Wan Chai, Hong Kong. China Resources Building Materials Technology Holdings Limited is a subsidiary of CRH (Cement) Limited.

About Anhui Conch Cement

Anhui Conch Cement Company Limited, together with its subsidiaries, manufactures, sells, and trades in clinker and cement products. The company operates through five segments: Eastern China, Central China, Southern China, Western China, and Overseas. It provides construction and installation services for industrial purposes; logistic services; and mining and related services. The company manufactures and sells cement packaging products, concrete products, and refractory materials; and develops and sells profile and related products, as well as exports clinker and cement products. In addition, it engages in investment and trading, and selling aggregates. Anhui Conch Cement Company Limited was founded in 1997 and is based in Wuhu, the People's Republic of China.