Contrasting Martin Marietta Materials (NYSE:MLM) & Anhui Conch Cement (OTCMKTS:AHCHY)

Martin Marietta Materials (NYSE:MLM) and Anhui Conch Cement (OTCMKTS:AHCHY) are both large-cap construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Martin Marietta Materials and Anhui Conch Cement’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Martin Marietta Materials	16.47%	11.88%	6.25%
Anhui Conch Cement	10.74%	4.65%	3.68%

Institutional and Insider Ownership

95.0% of Martin Marietta Materials shares are owned by institutional investors. 0.7% of Martin Marietta Materials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Martin Marietta Materials and Anhui Conch Cement”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Martin Marietta Materials	$6.69 billion	5.59	$2.00 billion	$18.03	34.35
Anhui Conch Cement	$12.66 billion	1.24	$1.12 billion	$1.24	11.99

Martin Marietta Materials has higher earnings, but lower revenue than Anhui Conch Cement. Anhui Conch Cement is trading at a lower price-to-earnings ratio than Martin Marietta Materials, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Martin Marietta Materials has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Anhui Conch Cement has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500.

Dividends

Martin Marietta Materials pays an annual dividend of $3.32 per share and has a dividend yield of 0.5%. Anhui Conch Cement pays an annual dividend of $0.23 per share and has a dividend yield of 1.5%. Martin Marietta Materials pays out 18.4% of its earnings in the form of a dividend. Anhui Conch Cement pays out 18.5% 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. Martin Marietta Materials has increased its dividend for 9 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for Martin Marietta Materials and Anhui Conch Cement, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Martin Marietta Materials	0	5	13	2	2.85
Anhui Conch Cement	0	0	0	1	4.00

Martin Marietta Materials currently has a consensus price target of $628.56, indicating a potential upside of 1.48%. Given Martin Marietta Materials’ higher possible upside, equities analysts plainly believe Martin Marietta Materials is more favorable than Anhui Conch Cement.

Summary

Martin Marietta Materials beats Anhui Conch Cement on 15 of the 18 factors compared between the two stocks.

About Martin Marietta Materials

Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally. It offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; and Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. The company also produces magnesia-based chemicals products; dolomitic lime primarily to customers for steel production and soil stabilization; and cement treated materials. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. The company was founded in 1939 and is headquartered in Raleigh, North Carolina.

About Anhui Conch Cement

Anhui Conch Cement Company Limited, together with its subsidiaries, manufactures, sells, and trades in clinker and cement products. The company operates through five segments: Eastern China, Central China, Southern China, Western China, and Overseas. It provides construction and installation services for industrial purposes; logistic services; and mining and related services. The company manufactures and sells cement packaging products, concrete products, and refractory materials; and develops and sells profile and related products, as well as exports clinker and cement products. In addition, it engages in investment and trading, and selling aggregates. Anhui Conch Cement Company Limited was founded in 1997 and is based in Wuhu, the People's Republic of China.