Cementos Pacasmayo S.A.A. (NYSE:CPAC) & Vulcan Materials (NYSE:VMC) Financial Analysis

Cementos Pacasmayo S.A.A. (NYSE:CPAC) and Vulcan Materials (NYSE:VMC) are both construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Dividends

Cementos Pacasmayo S.A.A. pays an annual dividend of $0.50 per share and has a dividend yield of 7.3%. Vulcan Materials pays an annual dividend of $1.96 per share and has a dividend yield of 0.7%. Cementos Pacasmayo S.A.A. pays out 80.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vulcan Materials pays out 27.4% of its earnings in the form of a dividend. Vulcan Materials has raised its dividend for 12 consecutive years.

Risk and Volatility

Cementos Pacasmayo S.A.A. has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Vulcan Materials has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Cementos Pacasmayo S.A.A. and Vulcan Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cementos Pacasmayo S.A.A.	0	1	0	0	2.00
Vulcan Materials	0	2	10	2	3.00

Cementos Pacasmayo S.A.A. currently has a consensus target price of $6.40, suggesting a potential downside of 6.43%. Vulcan Materials has a consensus target price of $308.36, suggesting a potential upside of 4.58%. Given Vulcan Materials’ stronger consensus rating and higher possible upside, analysts plainly believe Vulcan Materials is more favorable than Cementos Pacasmayo S.A.A..

Institutional and Insider Ownership

90.4% of Vulcan Materials shares are held by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are held by insiders. Comparatively, 0.6% of Vulcan Materials shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Cementos Pacasmayo S.A.A. and Vulcan Materials’ 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%
Vulcan Materials	12.52%	12.81%	6.41%

Valuation & Earnings

This table compares Cementos Pacasmayo S.A.A. and Vulcan Materials”s gross 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.	$527.09 million	1.10	$53.00 million	$0.62	11.03
Vulcan Materials	$7.42 billion	5.25	$911.90 million	$7.16	41.18

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

Summary

Vulcan Materials beats Cementos Pacasmayo S.A.A. on 15 of the 18 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 Vulcan Materials

Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The company provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities. It also offers asphalt mix and asphalt construction paving services; ready-mixed concrete; and calcium products for the animal feed, plastics, and water treatment industries. The company was formerly known as Virginia Holdco, Inc. and changed its name to Vulcan Materials Company. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.