Vulcan Materials (NYSE:VMC – Get Free Report) and Cemex (NYSE:CX – Get Free Report) are both large-cap materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.
Risk & Volatility
Vulcan Materials has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Cemex has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Vulcan Materials and Cemex, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vulcan Materials | 1 | 9 | 12 | 0 | 2.50 |
| Cemex | 1 | 3 | 7 | 0 | 2.55 |
Vulcan Materials presently has a consensus price target of $311.94, suggesting a potential upside of 9.71%. Cemex has a consensus price target of $13.92, suggesting a potential upside of 30.75%. Given Cemex’s stronger consensus rating and higher probable upside, analysts clearly believe Cemex is more favorable than Vulcan Materials.
Institutional and Insider Ownership
90.4% of Vulcan Materials shares are held by institutional investors. Comparatively, 83.0% of Cemex shares are held by institutional investors. 0.7% of Vulcan Materials shares are held by insiders. Comparatively, 1.0% of Cemex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Vulcan Materials and Cemex’s 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% |
| Cemex | 3.60% | 5.18% | 2.43% |
Valuation and Earnings
This table compares Vulcan Materials and Cemex”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vulcan Materials | $8.01 billion | 4.56 | $1.08 billion | $8.45 | 33.65 |
| Cemex | $16.13 billion | 0.96 | $960.00 million | $0.44 | 24.19 |
Vulcan Materials has higher earnings, but lower revenue than Cemex. Cemex 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%. Cemex pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Vulcan Materials pays out 24.6% 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. Vulcan Materials has raised its dividend for 12 consecutive years.
Summary
Vulcan Materials beats Cemex on 11 of the 17 factors compared between the two stocks.
About Vulcan Materials
Vulcan Materials Company is a U.S.-based producer of construction materials, with its core business focused on aggregates such as crushed stone, sand and gravel. These materials are used in roads, buildings and other infrastructure projects. The company also produces asphalt mix and ready-mixed concrete, serving customers in the construction and infrastructure industries. Its operations are concentrated across the southern and western United States, as well as parts of the Mid-Atlantic region. Founded in 1909 and headquartered in Birmingham, Alabama, Vulcan Materials has grown into one of the largest producers of construction aggregates in the United States.
About Cemex
Cemex is a global building materials company headquartered in San Pedro Garza García, Mexico. Founded in Mexico in 1906, it has grown through expansion and acquisitions into an international supplier serving construction and infrastructure markets. The company produces and sells cement, ready-mix concrete and aggregates, including sand and gravel. It also provides related building-materials and construction solutions, along with services such as logistics and materials delivery. Cemex serves customers across the Americas, Europe, the Middle East, Africa and Asia.
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