Analyzing China Resources Cement (OTCMKTS:CARCY) and Eagle Materials (NYSE:EXP)

China Resources Cement (OTCMKTS:CARCY) and Eagle Materials (NYSE:EXP) are both construction companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Dividends

China Resources Cement pays an annual dividend of $0.06 per share and has a dividend yield of 0.9%. Eagle Materials pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. China Resources Cement pays out 31.6% of its earnings in the form of a dividend. Eagle Materials pays out 7.3% 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.

Profitability

This table compares China Resources Cement and Eagle Materials’ 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%
Eagle Materials	20.50%	32.71%	15.04%

Volatility and Risk

China Resources Cement has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500. Comparatively, Eagle Materials has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Institutional and Insider Ownership

96.1% of Eagle Materials shares are owned by institutional investors. 1.5% of Eagle Materials shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares China Resources Cement and Eagle Materials”s top-line 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	0.49	$29.33 million	$0.19	35.74
Eagle Materials	$2.26 billion	3.12	$463.42 million	$13.76	15.71

Eagle Materials has lower revenue, but higher earnings than China Resources Cement. Eagle Materials 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.

Analyst Ratings

This is a summary of recent ratings for China Resources Cement and Eagle Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Resources Cement	0	0	0	0	0.00
Eagle Materials	0	6	3	0	2.33

Eagle Materials has a consensus price target of $254.44, suggesting a potential upside of 17.73%. Given Eagle Materials’ stronger consensus rating and higher possible upside, analysts clearly believe Eagle Materials is more favorable than China Resources Cement.

Summary

Eagle Materials beats China Resources Cement on 13 of the 16 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 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.