Contrasting Heidelberg Materials (OTCMKTS:HDLMY) & James Hardie Industries (NYSE:JHX)

Heidelberg Materials (OTCMKTS:HDLMY) and James Hardie Industries (NYSE:JHX) are both large-cap materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Institutional and Insider Ownership

0.0% of Heidelberg Materials shares are held by institutional investors. Comparatively, 8.0% of James Hardie Industries shares are held by institutional investors. 1.2% of James Hardie Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Heidelberg Materials and James Hardie Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heidelberg Materials	N/A	N/A	N/A
James Hardie Industries	2.69%	10.56%	4.93%

Valuation and Earnings

This table compares Heidelberg Materials and James Hardie Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heidelberg Materials	$24.40 billion	1.35	$2.20 billion	N/A	N/A
James Hardie Industries	$4.84 billion	3.72	$104.00 million	$0.25	124.10

Heidelberg Materials has higher revenue and earnings than James Hardie Industries.

Risk and Volatility

Heidelberg Materials has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, James Hardie Industries has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Heidelberg Materials and James Hardie Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heidelberg Materials	1	1	0	2	2.75
James Hardie Industries	0	3	9	0	2.75

James Hardie Industries has a consensus target price of $32.50, suggesting a potential upside of 4.76%. Given James Hardie Industries’ higher possible upside, analysts clearly believe James Hardie Industries is more favorable than Heidelberg Materials.

Summary

James Hardie Industries beats Heidelberg Materials on 9 of the 12 factors compared between the two stocks.

About Heidelberg Materials

Heidelberg Materials AG, together with its subsidiaries, produces and distributes cement, aggregates, ready-mixed concrete and asphalt. It provides cement products; natural stone aggregates and ready-mixed concrete. Heidelberg Materials AG, formerly known as HeidelbergCement AG, is based in Heidelberg, Germany.

About James Hardie Industries

James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, and the Philippines. The company operates through North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products segments. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement products for a range of applications, including external cladding, internal walls, ceilings, floors, soffits, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for use in the timber frame construction, dry lining, DIY, and structural fire protection applications. Its products are used in residential repair and remodel, and commercial and residential new construction markets James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.