Reviewing Cemex S.A.B. de C.V. (CX) and Cementos Pacasmayo S.A.A. (CPAC)

Cemex S.A.B. de C.V. (NYSE: CX) and Cementos Pacasmayo S.A.A. (NYSE:CPAC) are both construction companies, but which is the better business? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, profitabiliy, valuation, earnings and analyst recommendations.

Profitability

This table compares Cemex S.A.B. de C.V. and Cementos Pacasmayo S.A.A.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cemex S.A.B. de C.V. 7.66% 8.54% 2.74%
Cementos Pacasmayo S.A.A. 9.18% 5.80% 3.40%

Insider and Institutional Ownership

38.8% of Cemex S.A.B. de C.V. shares are owned by institutional investors. Comparatively, 4.4% of Cementos Pacasmayo S.A.A. shares are owned by institutional investors. 1.0% of Cemex S.A.B. de C.V. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Cemex S.A.B. de C.V. and Cementos Pacasmayo S.A.A., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cemex S.A.B. de C.V. 0 2 7 1 2.90
Cementos Pacasmayo S.A.A. 0 1 0 0 2.00

Cemex S.A.B. de C.V. currently has a consensus target price of $10.46, indicating a potential upside of 13.35%. Cementos Pacasmayo S.A.A. has a consensus target price of $11.00, indicating a potential downside of 2.14%. Given Cemex S.A.B. de C.V.’s stronger consensus rating and higher possible upside, analysts plainly believe Cemex S.A.B. de C.V. is more favorable than Cementos Pacasmayo S.A.A..

Valuation & Earnings

This table compares Cemex S.A.B. de C.V. and Cementos Pacasmayo S.A.A.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cemex S.A.B. de C.V. $13.93 billion 9.68 $2.98 billion $0.73 12.63
Cementos Pacasmayo S.A.A. N/A N/A N/A $0.30 37.47

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

Volatility & Risk

Cemex S.A.B. de C.V. has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500. Comparatively, Cementos Pacasmayo S.A.A. has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Dividends

Cementos Pacasmayo S.A.A. pays an annual dividend of $0.38 per share and has a dividend yield of 3.4%. Cemex S.A.B. de C.V. does not pay a dividend. Cementos Pacasmayo S.A.A. pays out 126.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Cemex S.A.B. de C.V. beats Cementos Pacasmayo S.A.A. on 11 of the 15 factors compared between the two stocks.

Cemex S.A.B. de C.V. Company Profile

CEMEX, S.A.B. de C.V. (CEMEX) is an operating and holding company engaged, directly or indirectly, through its operating subsidiaries, primarily in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates, clinker and other construction materials throughout the world, and that provides construction-related services to customers and communities in over 50 countries throughout the world. The Company operates in various locations, including Mexico, the United States, Europe, South America, Central America, the Caribbean, Asia, the Middle East and Africa. Its cement production facilities are located in Mexico, the United States, Spain, Egypt, Germany, Colombia, the Philippines, Poland, the Dominican Republic, the United Kingdom, Panama, Latvia, Puerto Rico, Thailand, Costa Rica and Nicaragua. The Company is a supplier of aggregates, primarily the crushed stone, sand and gravel, used in various forms of construction.

Cementos Pacasmayo S.A.A. Company Profile

Pacasmayo Cement Corp, formerly Cementos Pacasmayo SAA, is a Peru-based company principally engaged in the production, distribution and sale of construction materials. The Company is active in the development of traditional and blended cement, ready-mix concrete, mortars, quicklime, concrete blocks, diatomite bricks and aggregates, among others. It manages mining units and exploration projects located in the provinces of Rioja, Tembladera, Bongara and Bayovar. Additionally, the Company provides various services and construction solutions, such as concrete pumping, metal shuttering systems, pavement service and delivery of construction materials. The Company owns such subsidiaries as Distribuidora Norte Pacasmayo SRL, Salmueras Sudamericanas SA, Fosfatos del Pacifico SA, Cementos Selva SA, Empresa de Transmison Guadalupe SAC and Zemex LLC.

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