Critical Review: Buzzi (OTCMKTS:BZZUY) and Loma Negra Compania Industrial Argentina (NYSE:LOMA)

Buzzi (OTCMKTS:BZZUY) and Loma Negra Compania Industrial Argentina (NYSE:LOMA) are both materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Buzzi and Loma Negra Compania Industrial Argentina, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Buzzi	0	4	1	0	2.20
Loma Negra Compania Industrial Argentina	0	1	1	0	2.50

Profitability

This table compares Buzzi and Loma Negra Compania Industrial Argentina’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Buzzi	N/A	N/A	N/A
Loma Negra Compania Industrial Argentina	5.05%	3.79%	2.15%

Earnings & Valuation

This table compares Buzzi and Loma Negra Compania Industrial Argentina”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Buzzi	N/A	N/A	N/A	($0.06)	-376.58
Loma Negra Compania Industrial Argentina	$855.63 billion	0.00	$18.87 million	$0.29	32.51

Loma Negra Compania Industrial Argentina has higher revenue and earnings than Buzzi. Buzzi is trading at a lower price-to-earnings ratio than Loma Negra Compania Industrial Argentina, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.2% of Buzzi shares are held by institutional investors. Comparatively, 19.3% of Loma Negra Compania Industrial Argentina shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Buzzi pays an annual dividend of $0.02 per share and has a dividend yield of 0.1%. Loma Negra Compania Industrial Argentina pays an annual dividend of $0.39 per share and has a dividend yield of 4.1%. Buzzi pays out -25.8% of its earnings in the form of a dividend. Loma Negra Compania Industrial Argentina pays out 134.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Loma Negra Compania Industrial Argentina beats Buzzi on 9 of the 10 factors compared between the two stocks.

About Buzzi

Buzzi S.p.A., together with its subsidiaries, manufactures, distributes, and sells cement, ready-mix concrete, and aggregates. It has operations primarily in Italy, the United States, Germany, Luxembourg, the Netherlands, Poland, the Czech Republic, Slovakia, Ukraine, Mexico, and Brazil. Buzzi S.p.A. was formerly known as Buzzi Unicem S.p.A. and changed its name to Buzzi S.p.A. in May 2023. The company was founded in 1872 and is headquartered in Casale Monferrato, Italy. Buzzi S.p.A. is a subsidiary of Fimedi – S.P.A.

About Loma Negra Compania Industrial Argentina

Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Railroad; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. The company also provides rail transportation services; and treats and recycles industrial waste for use as fuel and raw material. It markets its products under the Loma Negra, San Martín, Plasticor, Cacique Plus, Cacique Max, Loma Negra Plus, and Lomax brands. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima is a subsidiary of Intercement Trading E Inversiones Argentina Sociedad Limitada.