Critical Review: China Resources Cement (OTCMKTS:CARCY) and Origin Energy (OTCMKTS:OGFGY)

Dividends

Origin Energy pays an annual dividend of $0.42 per share and has a dividend yield of 5.4%. China Resources Cement pays an annual dividend of $0.14 per share and has a dividend yield of 3.4%. Origin Energy pays out 88.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. China Resources Cement pays out 140.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Origin Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Origin Energy and China Resources Cement’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Origin Energy	N/A	N/A	N/A
China Resources Cement	0.86%	0.39%	0.25%

Earnings & Valuation

This table compares Origin Energy and China Resources Cement”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Origin Energy	N/A	N/A	N/A	$0.48	16.21
China Resources Cement	$2.93 billion	0.33	$66.68 million	$0.10	41.00

China Resources Cement has higher revenue and earnings than Origin Energy. Origin Energy is trading at a lower price-to-earnings ratio than China Resources Cement, indicating that it is currently the more affordable of the two stocks.

Summary

China Resources Cement beats Origin Energy on 5 of the 8 factors compared between the two stocks.

About Origin Energy

Origin Energy Limited, an integrated energy company, engages in the exploration and production of natural gas, electricity generation, wholesale and retail sale of electricity and gas, and sale of liquefied natural gas in Australia and internationally. The company operates through, Energy Markets, and Integrated Gas segments. Its exploration and production portfolio includes the Bowen and Surat basins in Queensland; the Browse basin in Western Australia; and the Cooper-Eromanga basin in Queensland. The company also generates electricity from coal, wind, pumped hydro, and solar plants; sells electricity, natural gas, and LPG; and provides GreenPower products. In addition, it offers electric and gas hot water systems. Origin Energy Limited was incorporated in 1946 and is based in Barangaroo, Australia.

About China Resources Cement

China Resources Building Materials Technology Holdings Limited, an investment holding company, manufactures and sells cement, concrete, aggregates, and related products and services in Mainland China. It operates through Cement, Concrete, and Aggregates and Others segments. The company engages in the excavation of limestone; and production, sale, and distribution of cement, clinker, and concrete. The company's products are used in the construction of infrastructure projects, such as railways, highways, subways, bridges, airports, ports, dams, and hydroelectric and nuclear power stations, as well as high-rise buildings, and suburban and rural area development. It also engages in the manufacture and sale of engineered and natural stones, and other products; prefabricated construction materials; mining of aggregates; marine transportation activities; provides environmental protection engineering, and warehouse management and fuel supply services; and offers building materials testing and consultancy services. In addition, the company trades in steel pipes, aggregates, and construction materials; and holds properties. The company was formerly known as China Resources Cement Holdings Limited and changed its name to China Resources Building Materials Technology Holdings Limited in November 2023. The company was founded in 1998 and is headquartered in Wan Chai, Hong Kong. China Resources Building Materials Technology Holdings Limited is a subsidiary of CRH (Cement) Limited.