Critical Review: Loma Negra Compania Industrial Argentina (LOMA) versus Its Rivals

Loma Negra Compania Industrial Argentina (NYSE:LOMA) is one of 74 publicly-traded companies in the “Construction Materials” industry, but how does it compare to its competitors? We will compare Loma Negra Compania Industrial Argentina to related businesses based on the strength of its valuation, risk, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Insider & Institutional Ownership

19.3% of Loma Negra Compania Industrial Argentina shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Construction Materials” companies are owned by institutional investors. 10.0% of shares of all “Construction Materials” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Loma Negra Compania Industrial Argentina and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Loma Negra Compania Industrial Argentina	$855.63 billion	$18.87 million	20.41
Loma Negra Compania Industrial Argentina Competitors	$32.58 billion	$651.21 million	24.74

Loma Negra Compania Industrial Argentina has higher revenue, but lower earnings than its competitors. Loma Negra Compania Industrial Argentina is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for Loma Negra Compania Industrial Argentina and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loma Negra Compania Industrial Argentina	1	0	1	0	2.00
Loma Negra Compania Industrial Argentina Competitors	437	2142	2935	87	2.48

As a group, “Construction Materials” companies have a potential upside of 403.19%. Given Loma Negra Compania Industrial Argentina’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Loma Negra Compania Industrial Argentina has less favorable growth aspects than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Loma Negra Compania Industrial Argentina	7.38%	5.61%	3.24%
Loma Negra Compania Industrial Argentina Competitors	1.47%	7.94%	4.87%

Dividends

Loma Negra Compania Industrial Argentina pays an annual dividend of $0.39 per share and has a dividend yield of 4.4%. Loma Negra Compania Industrial Argentina pays out 90.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Construction Materials” companies pay a dividend yield of 178.8% and pay out 31.6% of their earnings in the form of a dividend. Loma Negra Compania Industrial Argentina lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Volatility & Risk

Loma Negra Compania Industrial Argentina has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Loma Negra Compania Industrial Argentina’s competitors have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Summary

Loma Negra Compania Industrial Argentina competitors beat Loma Negra Compania Industrial Argentina on 13 of the 15 factors compared.

Loma Negra Compania Industrial Argentina Company Profile

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.