Contrasting Eagle Materials (NYSE:EXP) and Yulong Eco-Materials (OTCMKTS:YECO)

Eagle Materials (NYSE:EXP) and Yulong Eco-Materials (OTCMKTS:YECO) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings for Eagle Materials and Yulong Eco-Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Materials	0	6	3	0	2.33
Yulong Eco-Materials	0	0	0	0	0.00

Eagle Materials presently has a consensus target price of $255.33, suggesting a potential upside of 15.89%. Given Eagle Materials’ stronger consensus rating and higher possible upside, analysts clearly believe Eagle Materials is more favorable than Yulong Eco-Materials.

Volatility and Risk

Eagle Materials has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Yulong Eco-Materials has a beta of 2.81, meaning that its share price is 181% more volatile than the S&P 500.

Profitability

This table compares Eagle Materials and Yulong Eco-Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Materials	19.81%	31.21%	14.30%
Yulong Eco-Materials	N/A	N/A	N/A

Earnings and Valuation

This table compares Eagle Materials and Yulong Eco-Materials”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Materials	$2.26 billion	3.16	$463.42 million	$13.76	16.01
Yulong Eco-Materials	N/A	N/A	N/A	N/A	N/A

Eagle Materials has higher revenue and earnings than Yulong Eco-Materials.

Institutional and Insider Ownership

96.1% of Eagle Materials shares are owned by institutional investors. 1.5% of Eagle Materials shares are owned by company insiders. Comparatively, 41.3% of Yulong Eco-Materials shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Eagle Materials beats Yulong Eco-Materials on 8 of the 10 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 Yulong Eco-Materials

EV Biologics, Inc., a biotechnology company, engages in the commercial development of extracellular vesicles (EVs) as biological modalities for diagnostics and therapeutics. It is involved in developing vaccines, therapeutics, and cures based on its proprietary multifunctional EV platform. The company also focuses on developing human mesenchymal and other stem cell, and cell-derived products to market in the cosmetic and biopharmaceutical spaces. The company was formerly known as Yulong Eco-Materials Limited and changed its name to EV Biologics, Inc. in August 2020. EV Biologics, Inc. was incorporated in 2011 and is headquartered in Cheyenne, Wyoming.