Comparing Eagle Materials (NYSE:EXP) & Fletcher Building (OTCMKTS:FCREY)

Eagle Materials (NYSE:EXP) and Fletcher Building (OTCMKTS:FCREY) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for Eagle Materials and Fletcher Building, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Materials	0	1	8	0	2.89
Fletcher Building	0	0	0	0	N/A

Eagle Materials presently has a consensus price target of $257.00, indicating a potential upside of 6.11%. Given Eagle Materials’ higher possible upside, equities research analysts plainly believe Eagle Materials is more favorable than Fletcher Building.

Dividends

Eagle Materials pays an annual dividend of $1.00 per share and has a dividend yield of 0.4%. Fletcher Building pays an annual dividend of $0.57 per share and has a dividend yield of 12.9%. Eagle Materials pays out 7.1% of its earnings in the form of a dividend. Fletcher Building pays out 58.4% 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.

Institutional & Insider Ownership

96.1% of Eagle Materials shares are held by institutional investors. 1.7% of Eagle Materials shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Eagle Materials and Fletcher Building’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Materials	22.24%	40.05%	17.63%
Fletcher Building	N/A	N/A	N/A

Earnings & Valuation

This table compares Eagle Materials and Fletcher Building’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Materials	$2.15 billion	3.88	$461.54 million	$14.17	17.09
Fletcher Building	N/A	N/A	N/A	$0.98	4.52

Eagle Materials has higher revenue and earnings than Fletcher Building. Fletcher Building is trading at a lower price-to-earnings ratio than Eagle Materials, indicating that it is currently the more affordable of the two stocks.

Summary

Eagle Materials beats Fletcher Building on 11 of the 12 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; 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. It also manufactures and sells recycled paperboard to gypsum wallboard industry and other paperboard converters, as well as containerboard and lightweight packaging grades. In addition, the company engages in the sale of ready-mix concrete; and mining, extracting, production, and sale of aggregates, including crushed stones, sand, and gravel. Its products are used in commercial and residential construction; public construction projects; and projects to build, expand, and repair roads and highways. 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 Fletcher Building

Fletcher Building Limited, together with its subsidiaries, manufactures and distributes building products in New Zealand, Australia, and internationally. It operates through Building Products, Distribution, Concrete, Residential and Development, Construction, and Australia segments. The Building Products segment manufactures, markets, and distributes building products used to build homes; and buildings and infrastructure, including insulations, plasterboards, laminate surfaces, and plastic and concrete piping for the commercial and residential markets. The Distribution segment distributes building, plumbing, and pipeline products under the PlaceMakers, Mico, and TUMU brands. The Concrete segment engages in the extraction of aggregates, and production of cement and concrete. The Residential and Development segment builds residential homes and apartments; and develops and sells residential and commercial land. The Construction segment builds and maintains public and commercial buildings, transport and utilities infrastructure, and buildings and infrastructure, as well as designs, constructs, and maintains roads and civil infrastructure. The Australia segment manufactures and distributes building materials, such as insulation, plasterboard, laminate surfaces, steel roofing, and plastic and concrete piping for a range of industries across Australia. The company was founded in 1909 and is headquartered in Auckland, New Zealand.