Heidelberg Materials (OTCMKTS:HDELY – Get Free Report) and Vulcan Materials (NYSE:VMC – Get Free Report) are both large-cap materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.
Profitability
This table compares Heidelberg Materials and Vulcan Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Heidelberg Materials | N/A | N/A | N/A |
| Vulcan Materials | 13.75% | 13.05% | 6.70% |
Volatility and Risk
Heidelberg Materials has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Vulcan Materials has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Heidelberg Materials | $22.92 billion | 0.99 | $2.09 billion | N/A | N/A |
| Vulcan Materials | $8.12 billion | 4.50 | $1.08 billion | $8.47 | 33.26 |
Heidelberg Materials has higher revenue and earnings than Vulcan Materials.
Insider and Institutional Ownership
0.0% of Heidelberg Materials shares are held by institutional investors. Comparatively, 90.4% of Vulcan Materials shares are held by institutional investors. 0.7% of Vulcan Materials shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and target prices for Heidelberg Materials and Vulcan Materials, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heidelberg Materials | 0 | 2 | 1 | 0 | 2.33 |
| Vulcan Materials | 0 | 8 | 8 | 0 | 2.50 |
Vulcan Materials has a consensus price target of $327.93, suggesting a potential upside of 16.39%. Given Vulcan Materials’ stronger consensus rating and higher probable upside, analysts plainly believe Vulcan Materials is more favorable than Heidelberg Materials.
Dividends
Heidelberg Materials pays an annual dividend of $0.42 per share and has a dividend yield of 1.7%. Vulcan Materials pays an annual dividend of $2.08 per share and has a dividend yield of 0.7%. Vulcan Materials pays out 24.6% of its earnings in the form of a dividend. Vulcan Materials has raised its dividend for 12 consecutive years.
Summary
Vulcan Materials beats Heidelberg Materials on 10 of the 15 factors compared between the two stocks.
About Heidelberg Materials
Heidelberg Materials AG, together with its subsidiaries, produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. It provides cement products; natural stone aggregates, including sand and gravel; crushed aggregates comprising stone chippings and crushed stones; and ready-mixed concrete for use in the construction of tunnels or bridges, office buildings, or schools, as well as to produce precast concrete parts, such as stairs, ceiling elements, or structural components. The company offers asphalt; and trades in cement, clinker, secondary cementitious materials, solid, alternative fuels, other building materials, and additives. The company was formerly known as HeidelbergCement AG and changed its name to Heidelberg Materials AG in May 2023. Heidelberg Materials AG was founded in 1873 and is headquartered in Heidelberg, Germany.
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.
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