Vulcan Materials (NYSE:VMC – Get Free Report) and Cementos Pacasmayo S.A.A. (NYSE:CPAC – Get Free Report) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.
Insider & Institutional Ownership
90.4% of Vulcan Materials shares are held by institutional investors. 0.6% of Vulcan Materials shares are held by insiders. Comparatively, 0.2% of Cementos Pacasmayo S.A.A. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Vulcan Materials and Cementos Pacasmayo S.A.A., as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Vulcan Materials | 0 | 2 | 10 | 2 | 3.00 |
Cementos Pacasmayo S.A.A. | 0 | 1 | 0 | 0 | 2.00 |
Valuation and Earnings
This table compares Vulcan Materials and Cementos Pacasmayo S.A.A.”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Vulcan Materials | $7.42 billion | 5.35 | $911.90 million | $7.16 | 41.96 |
Cementos Pacasmayo S.A.A. | $527.09 million | 1.12 | $53.00 million | $0.62 | 11.23 |
Vulcan 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 Vulcan Materials, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Vulcan Materials has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Cementos Pacasmayo S.A.A. has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500.
Profitability
This table compares Vulcan Materials and Cementos Pacasmayo S.A.A.’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Vulcan Materials | 12.52% | 12.81% | 6.41% |
Cementos Pacasmayo S.A.A. | 10.51% | 16.60% | 6.62% |
Dividends
Vulcan Materials pays an annual dividend of $1.96 per share and has a dividend yield of 0.7%. Cementos Pacasmayo S.A.A. pays an annual dividend of $0.50 per share and has a dividend yield of 7.2%. Vulcan Materials pays out 27.4% of its earnings in the form of a dividend. Cementos Pacasmayo S.A.A. pays out 80.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vulcan Materials has raised its dividend for 12 consecutive years.
Summary
Vulcan Materials beats Cementos Pacasmayo S.A.A. on 15 of the 18 factors compared between the two stocks.
About Vulcan Materials
Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The company provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities. It also offers asphalt mix and asphalt construction paving services; ready-mixed concrete; and calcium products for the animal feed, plastics, and water treatment industries. The company was formerly known as Virginia Holdco, Inc. and changed its name to Vulcan Materials Company. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.
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.
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