Analyzing Smith-Midland (NASDAQ:SMID) and Cementos Pacasmayo S.A.A. (NYSE:CPAC)

Smith-Midland (NASDAQ:SMID) and Cementos Pacasmayo S.A.A. (NYSE:CPAC) are both small-cap construction companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Earnings and Valuation

This table compares Smith-Midland and Cementos Pacasmayo S.A.A.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smith-Midland	$78.51 million	2.87	$7.68 million	$1.85	23.01
Cementos Pacasmayo S.A.A.	$527.09 million	0.99	$53.00 million	$0.62	9.89

Cementos Pacasmayo S.A.A. has higher revenue and earnings than Smith-Midland. Cementos Pacasmayo S.A.A. is trading at a lower price-to-earnings ratio than Smith-Midland, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Smith-Midland and Cementos Pacasmayo S.A.A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smith-Midland	11.64%	23.92%	14.38%
Cementos Pacasmayo S.A.A.	10.51%	16.60%	6.62%

Institutional & Insider Ownership

49.9% of Smith-Midland shares are owned by institutional investors. 3.9% of Smith-Midland shares are owned by company insiders. Comparatively, 0.2% of Cementos Pacasmayo S.A.A. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Smith-Midland has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, Cementos Pacasmayo S.A.A. has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Smith-Midland and Cementos Pacasmayo S.A.A., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smith-Midland	0	0	0	0	0.00
Cementos Pacasmayo S.A.A.	1	1	0	0	1.50

Cementos Pacasmayo S.A.A. has a consensus target price of $6.20, suggesting a potential upside of 1.14%. Given Cementos Pacasmayo S.A.A.’s stronger consensus rating and higher probable upside, analysts clearly believe Cementos Pacasmayo S.A.A. is more favorable than Smith-Midland.

Summary

Smith-Midland beats Cementos Pacasmayo S.A.A. on 9 of the 13 factors compared between the two stocks.

About Smith-Midland

Smith-Midland Corporation invents, develops, manufactures, markets, leases, licenses, sells, and installs precast concrete products and systems in the United States. It offers SlenderWall lightweight construction panel, lightweight exterior cladding used for the exterior walls of buildings; Sierra Wall that provides sound and sight barrier for use alongside highways around residential, industrial, and commercial properties; J-J Hooks highway safety barriers, used on roadways to separate lanes of traffic in construction work zone or traffic control purposes; Easi-Set precast building and Easi-Span expandable precast buildings, used in housing communications operations, traffic control systems, and mechanical and electrical stations; Easi-Set utility, vaults for house equipment, such as cable, telephone, or traffic signal equipment, and for underground storage, as well as custom-built utility vaults for special needs; SoftSound soundwall panels, it absorb highway noise; Beach Prisms erosion control modules for seawalls and jetties; and H2Out secondary drainage systems for panelized exterior cladding. It licenses its proprietary products in the United States, Canada, New Zealand, Australia, Belgium, Mexico, and Trinidad. The company markets its products through in-house sales force and independent sales representatives to contractors performing public and private construction contracts, such as construction of commercial buildings, public and private roads and highways, airports, and municipal utilities; and federal, state, and local transportation authorities. It serves its products to construction, highway, utilities, and farming industries. Smith-Midland Corporation was founded in 1960 and is based in Midland, Virginia.

About Cementos Pacasmayo S.A.A.

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in Peru. It operates through three segments: Cement, Concrete, Mortar and Precast; Quicklime; and Sales of Construction Supplies. The company’s cement and concrete products are used in residential and commercial construction, and civil engineering; ready-mix concrete used in construction sites; concrete precast, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete precast for structural and non-structural uses; and cement-based products. It also produces and distributes quicklime for use in steel, food, fishing, and chemical industries. In addition, the company sells and distributes other construction materials manufactured by third parties, such as steel rebar, plastic pipes, and electrical wires. It offers its products directly to other retailers, private construction companies, and government entities through a network of independent retailers and hardware stores. The company was incorporated in 1949 and is headquartered in Lima, Peru. Cementos Pacasmayo S.A.A. is a subsidiary of Inversiones ASPI S.A.