Vulcan Materials (NYSE:VMC – Get Free Report) and Eagle Materials (NYSE:EXP – Get Free Report) are both materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
Earnings and Valuation
This table compares Vulcan Materials and Eagle Materials”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vulcan Materials | $7.94 billion | 4.59 | $1.08 billion | $8.45 | 33.32 |
| Eagle Materials | $2.31 billion | 2.44 | $423.81 million | $12.65 | 14.53 |
Vulcan Materials has higher revenue and earnings than Eagle Materials. Eagle Materials is trading at a lower price-to-earnings ratio than Vulcan Materials, indicating that it is currently the more affordable of the two stocks.
Dividends
Vulcan Materials pays an annual dividend of $2.08 per share and has a dividend yield of 0.7%. Eagle Materials pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. Vulcan Materials pays out 24.6% of its earnings in the form of a dividend. Eagle Materials pays out 7.9% 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. Vulcan Materials has raised its dividend for 12 consecutive years. Vulcan Materials is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Vulcan Materials and Eagle Materials, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vulcan Materials | 1 | 9 | 12 | 0 | 2.50 |
| Eagle Materials | 1 | 10 | 0 | 0 | 1.91 |
Vulcan Materials presently has a consensus target price of $308.78, suggesting a potential upside of 9.66%. Eagle Materials has a consensus target price of $195.22, suggesting a potential upside of 6.24%. Given Vulcan Materials’ stronger consensus rating and higher possible upside, equities analysts clearly believe Vulcan Materials is more favorable than Eagle Materials.
Volatility and Risk
Vulcan Materials has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Eagle Materials has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.
Insider & Institutional Ownership
90.4% of Vulcan Materials shares are held by institutional investors. Comparatively, 96.1% of Eagle Materials shares are held by institutional investors. 0.7% of Vulcan Materials shares are held by insiders. Comparatively, 1.7% of Eagle Materials shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Vulcan Materials and Eagle Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vulcan Materials | 13.77% | 13.03% | 6.65% |
| Eagle Materials | 17.32% | 26.87% | 10.73% |
Summary
Vulcan Materials beats Eagle Materials on 9 of the 17 factors compared between the two stocks.
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.
About Eagle Materials
Eagle Materials Inc., through its subsidiaries, manufactures and sells heavy construction materials and light building materials in the United States. It operates in four segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement, including Portland limestone cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures, as well as well as containerboard and lightweight packaging grades; manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and mining and sale of aggregates, such as crushed stone, sand, and gravel. Its products are used in commercial and residential construction; public construction projects to build, expand, and repair roads and highways; and repair and remodel activities. The company was formerly known as Centex Construction Products, Inc. and changed its name to Eagle Materials, Inc. in January 2004. Eagle Materials Inc. was founded in 1963 and is headquartered in Dallas, Texas.
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