Head to Head Analysis: Federal Screw Works (OTCMKTS:FSCR) and Cemex (NYSE:CX)

Cemex (NYSE:CX) and Federal Screw Works (OTCMKTS:FSCR) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Volatility & Risk

Cemex has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Federal Screw Works has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Insider and Institutional Ownership

83.0% of Cemex shares are held by institutional investors. 1.0% of Cemex shares are held by company insiders. Comparatively, 46.2% of Federal Screw Works shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Cemex and Federal Screw Works”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cemex	$16.13 billion	0.97	$960.00 million	$0.34	31.76
Federal Screw Works	$97.55 million	0.10	$1.62 million	$0.71	10.06

Cemex has higher revenue and earnings than Federal Screw Works. Federal Screw Works is trading at a lower price-to-earnings ratio than Cemex, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cemex and Federal Screw Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cemex	2.83%	3.82%	1.80%
Federal Screw Works	0.99%	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cemex and Federal Screw Works, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cemex	0	5	7	0	2.58
Federal Screw Works	0	0	0	0	0.00

Cemex currently has a consensus price target of $13.07, indicating a potential upside of 20.99%. Given Cemex’s stronger consensus rating and higher possible upside, equities analysts clearly believe Cemex is more favorable than Federal Screw Works.

Summary

Cemex beats Federal Screw Works on 12 of the 14 factors compared between the two stocks.

About Cemex

CEMEX, S.A.B. de C.V., together with its subsidiaries, produces, markets, distributes, and sells cement, ready-mix concrete, aggregates, urbanization solutions, and other construction materials and services worldwide. The company offers gray ordinary portland, white portland, oil-well, and blended cement products; mortar; and standard ready-mix, architectural and decorative, rapid-setting, fiber-reinforced, fluid-fill, roller-compacted, self-consolidating, pervious, and antibacterial, and other concrete products. It also provides crushed stone, sand, gravel, and recycled concrete products; performance materials, such as admixtures, mortars, special mortars, and asphalt; and waste management services comprising municipal and industrial, construction, demolition and excavation, and alternative raw materials. In addition, the company construction related services, including logistics and transportation, retail, pavement services, design and engineering, and others; and industrial construction products consist of precast components, 2D panels, 3D modules, and complete structures. CEMEX, S.A.B. de C.V. was founded in 1906 and is headquartered in San Pedro Garza García, Mexico.

About Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.