Heidelberg Materials (OTCMKTS:HLBZF – Get Free Report) and Cementos Pacasmayo S.A.A. (NYSE:CPAC – Get Free Report) are both materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.
Profitability
This table compares Heidelberg Materials and Cementos Pacasmayo S.A.A.’s 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 |
| Cementos Pacasmayo S.A.A. | 9.42% | 16.49% | 6.74% |
Dividends
Heidelberg Materials pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Cementos Pacasmayo S.A.A. pays an annual dividend of $0.56 per share and has a dividend yield of 4.8%. Heidelberg Materials pays out 24.8% of its earnings in the form of a dividend. Cementos Pacasmayo S.A.A. pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Heidelberg Materials | 0 | 1 | 4 | 0 | 2.80 |
| Cementos Pacasmayo S.A.A. | 0 | 4 | 0 | 0 | 2.00 |
Cementos Pacasmayo S.A.A. has a consensus target price of $13.00, suggesting a potential upside of 10.54%. Given Cementos Pacasmayo S.A.A.’s higher possible upside, analysts clearly believe Cementos Pacasmayo S.A.A. is more favorable than Heidelberg Materials.
Institutional and Insider Ownership
33.9% of Heidelberg Materials shares are owned by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Heidelberg Materials and Cementos Pacasmayo S.A.A.”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Heidelberg Materials | N/A | N/A | N/A | $2.42 | 76.48 |
| Cementos Pacasmayo S.A.A. | $593.95 million | 1.68 | $43.27 million | $0.72 | 16.33 |
Cementos Pacasmayo S.A.A. has higher revenue and earnings than Heidelberg Materials. Cementos Pacasmayo S.A.A. is trading at a lower price-to-earnings ratio than Heidelberg Materials, indicating that it is currently the more affordable of the two stocks.
Summary
Cementos Pacasmayo S.A.A. beats Heidelberg Materials on 7 of the 13 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 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.
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