Contrasting Cemex (CX) and Its Rivals

Cemex (NYSE:CX) is one of 74 publicly-traded companies in the “Construction Materials” industry, but how does it contrast to its peers? We will compare Cemex to similar companies based on the strength of its valuation, profitability, institutional ownership, dividends, analyst recommendations, earnings and risk.

Institutional and Insider Ownership

83.0% of Cemex shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Construction Materials” companies are owned by institutional investors. 1.0% of Cemex shares are owned by company insiders. Comparatively, 10.0% of shares of all “Construction Materials” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Cemex and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cemex	$16.13 billion	$960.00 million	24.76
Cemex Competitors	$6.70 billion	$651.21 million	24.30

Cemex has higher revenue and earnings than its peers. Cemex is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Cemex and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cemex	1	3	7	0	2.55
Cemex Competitors	434	2135	2926	87	2.48

Cemex presently has a consensus target price of $13.92, suggesting a potential upside of 27.75%. As a group, “Construction Materials” companies have a potential upside of 396.67%. Given Cemex’s peers higher probable upside, analysts clearly believe Cemex has less favorable growth aspects than its peers.

Risk & Volatility

Cemex has a beta of 1.51, indicating that its stock price is 51% more volatile than the S&P 500. Comparatively, Cemex’s peers have a beta of 0.91, indicating that their average stock price is 9% less volatile than the S&P 500.

Dividends

Cemex pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Cemex pays out 27.3% of its earnings in the form of a dividend. As a group, “Construction Materials” companies pay a dividend yield of 179.2% and pay out 31.5% of their earnings in the form of a dividend.

Profitability

This table compares Cemex and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cemex	3.60%	5.18%	2.43%
Cemex Competitors	1.55%	8.09%	4.97%

Summary

Cemex beats its peers on 8 of the 15 factors compared.

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.