United States Lime & Minerals (NASDAQ:USLM – Get Free Report) and Cemex (NYSE:CX – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.
Profitability
This table compares United States Lime & Minerals and Cemex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United States Lime & Minerals | 35.08% | 19.65% | 18.18% |
| Cemex | 3.60% | 5.18% | 2.43% |
Dividends
United States Lime & Minerals pays an annual dividend of $0.24 per share and has a dividend yield of 0.2%. Cemex pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. United States Lime & Minerals pays out 5.2% of its earnings in the form of a dividend. Cemex pays out 27.3% 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. United States Lime & Minerals has raised its dividend for 2 consecutive years.
Valuation & Earnings
This table compares United States Lime & Minerals and Cemex”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United States Lime & Minerals | $381.09 million | 9.29 | $134.27 million | $4.64 | 26.59 |
| Cemex | $17.38 billion | 0.91 | $960.00 million | $0.44 | 24.85 |
Cemex has higher revenue and earnings than United States Lime & Minerals. Cemex is trading at a lower price-to-earnings ratio than United States Lime & Minerals, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
27.1% of United States Lime & Minerals shares are owned by institutional investors. Comparatively, 83.0% of Cemex shares are owned by institutional investors. 1.5% of United States Lime & Minerals shares are owned by company insiders. Comparatively, 1.0% of Cemex shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for United States Lime & Minerals and Cemex, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United States Lime & Minerals | 0 | 0 | 2 | 0 | 3.00 |
| Cemex | 1 | 3 | 7 | 0 | 2.55 |
United States Lime & Minerals currently has a consensus target price of $131.00, indicating a potential upside of 6.18%. Cemex has a consensus target price of $13.92, indicating a potential upside of 27.29%. Given Cemex’s higher possible upside, analysts plainly believe Cemex is more favorable than United States Lime & Minerals.
Volatility & Risk
United States Lime & Minerals has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Cemex has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.
Summary
United States Lime & Minerals beats Cemex on 10 of the 17 factors compared between the two stocks.
About United States Lime & Minerals
United States Lime & Minerals, Inc. engages in the manufacture and sale of lime and limestone products. Its products include High Calcium Quicklime, Hydrated Lime, Lime Kiln Dust, Lime Slurry, and High Calcium Limestone. The company was founded in 1948 and is headquartered in Dallas, TX.
About Cemex
CEMEX, S.A.B. de C.V., together with its subsidiaries, produces, markets, distributes, and sells cement, ready-mix concrete, aggregates, urbanization solutions, and other construction materials and services worldwide. The company offers gray ordinary portland, white portland, oil-well, and blended cement products; mortar; and standard ready-mix, architectural and decorative, rapid-setting, fiber-reinforced, fluid-fill, roller-compacted, self-consolidating, pervious, and antibacterial, and other concrete products. It also provides crushed stone, sand, gravel, and recycled concrete products; performance materials, such as admixtures, mortars, special mortars, and asphalt; and waste management services comprising municipal and industrial, construction, demolition and excavation, and alternative raw materials. In addition, the company construction related services, including logistics and transportation, retail, pavement services, design and engineering, and others; and industrial construction products consist of precast components, 2D panels, 3D modules, and complete structures. CEMEX, S.A.B. de C.V. was founded in 1906 and is headquartered in San Pedro Garza García, Mexico.
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