Reviewing ReTo Eco-Solutions (NASDAQ:RETO) and Cementos Pacasmayo S.A.A. (NYSE:CPAC)

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

Profitability

This table compares Cementos Pacasmayo S.A.A. and ReTo Eco-Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cementos Pacasmayo S.A.A.	10.51%	16.60%	6.62%
ReTo Eco-Solutions	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent recommendations for Cementos Pacasmayo S.A.A. and ReTo Eco-Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cementos Pacasmayo S.A.A.	0	1	0	0	2.00
ReTo Eco-Solutions	0	0	0	0	0.00

Cementos Pacasmayo S.A.A. currently has a consensus target price of $6.40, indicating a potential upside of 0.85%. Given Cementos Pacasmayo S.A.A.’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Cementos Pacasmayo S.A.A. is more favorable than ReTo Eco-Solutions.

Volatility & Risk

Cementos Pacasmayo S.A.A. has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, ReTo Eco-Solutions has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Valuation & Earnings

This table compares Cementos Pacasmayo S.A.A. and ReTo Eco-Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cementos Pacasmayo S.A.A.	$2.03 billion	0.27	$53.00 million	$0.62	10.24
ReTo Eco-Solutions	$1.83 million	8.97	-$8.35 million	N/A	N/A

Cementos Pacasmayo S.A.A. has higher revenue and earnings than ReTo Eco-Solutions.

Insider & Institutional Ownership

6.3% of ReTo Eco-Solutions shares are owned by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are owned by insiders. Comparatively, 18.7% of ReTo Eco-Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Cementos Pacasmayo S.A.A. beats ReTo Eco-Solutions on 7 of the 11 factors compared between the two stocks.

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.

About ReTo Eco-Solutions

ReTo Eco-Solutions, Inc., together with its subsidiaries, manufactures and distributes construction materials primarily in China. Its products include aggregates, bricks, pavers, and tiles. The company's construction materials are used for water absorption, flood control, and water retention; for gardens, roads, bridges, city squares, retaining walls, and slope construction; for hydraulic ecological projects, such as slope protection and river transformation; and for insulation, decoration, and building walls. It also offers construction materials manufacturing equipment, such as automated production equipment with hydraulic integration in China, South Asia, North America, the Middle East, North Africa, and Southeast Asia. In addition, the company undertakes municipal construction projects, including sponge city projects. Further, it offers roadside assistance services, including towing, jump start, tire change, automobile repair services, and other services; and provision of designs, develops, and sells customized software solutions, such as logistics management system, retail management system, fleet management system, and vehicle rental management system. Additionally, the company provides parts, engineering support, consulting, technical advice and service, and other project-related solutions for environmental protection projects. ReTo Eco-Solutions, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.