Critical Comparison: Boston Sand & Gravel (OTCMKTS:BSND) and Eagle Materials (NYSE:EXP)

Eagle Materials (NYSE:EXP) and Boston Sand & Gravel (OTCMKTS:BSND) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Valuation and Earnings

This table compares Eagle Materials and Boston Sand & Gravel”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Materials	$2.32 billion	2.77	$423.81 million	$12.65	16.62
Boston Sand & Gravel	N/A	N/A	N/A	N/A	N/A

Eagle Materials has higher revenue and earnings than Boston Sand & Gravel.

Profitability

This table compares Eagle Materials and Boston Sand & Gravel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Materials	17.32%	26.87%	10.73%
Boston Sand & Gravel	N/A	N/A	N/A

Institutional and Insider Ownership

96.1% of Eagle Materials shares are owned by institutional investors. 1.7% of Eagle Materials shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Eagle Materials and Boston Sand & Gravel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Materials	0	9	1	0	2.10
Boston Sand & Gravel	0	0	0	0	0.00

Eagle Materials presently has a consensus target price of $222.56, suggesting a potential upside of 5.87%. Given Eagle Materials’ stronger consensus rating and higher possible upside, research analysts clearly believe Eagle Materials is more favorable than Boston Sand & Gravel.

Summary

Eagle Materials beats Boston Sand & Gravel on 9 of the 9 factors compared between the two stocks.

About Eagle Materials

Eagle Materials Inc., through its subsidiaries, manufactures and sells heavy construction materials and light building materials in the United States. It operates in four segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement, including Portland limestone cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures, as well as well as containerboard and lightweight packaging grades; manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and mining and sale of aggregates, such as crushed stone, sand, and gravel. Its products are used in commercial and residential construction; public construction projects to build, expand, and repair roads and highways; and repair and remodel activities. The company was formerly known as Centex Construction Products, Inc. and changed its name to Eagle Materials, Inc. in January 2004. Eagle Materials Inc. was founded in 1963 and is headquartered in Dallas, Texas.

About Boston Sand & Gravel

Boston Sand & Gravel Co. provides ready mixed concrete and aggregate products to the construction and landscaping industries in southeastern New England. The company offers ready mix concrete that include specialty mixes for winter concrete, slurry walls, and drilled shafts, as well as sand and aggregate, concrete blocks, and green products. Its products are used in projects ranging from small residential pours to mass pours for commercial and infrastructure projects; and construction projects, including central artery/tunnel project, waste water treatment plants, nuclear power plants, high rise-buildings, and slurry wall construction projects. The company serves customers through sales representatives. Boston Sand & Gravel Co. was founded in 1914 and is based in Boston, Massachusetts.