Eagle Materials (NYSE:EXP) and Cementos Pacasmayo S.A.A. (NYSE:CPAC) Financial Comparison

Eagle Materials (NYSE:EXP) and Cementos Pacasmayo S.A.A. (NYSE:CPAC) are both materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Institutional & Insider Ownership

96.1% of Eagle Materials shares are owned by institutional investors. 1.7% of Eagle Materials shares are owned by insiders. Comparatively, 0.2% of Cementos Pacasmayo S.A.A. shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

Eagle Materials has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Cementos Pacasmayo S.A.A. has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Valuation & Earnings

This table compares Eagle Materials and Cementos Pacasmayo S.A.A.”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Materials	$2.31 billion	2.38	$423.81 million	$12.05	14.99
Cementos Pacasmayo S.A.A.	$593.95 million	1.84	$43.27 million	$0.89	14.51

Eagle Materials has higher revenue and earnings than Cementos Pacasmayo S.A.A.. Cementos Pacasmayo S.A.A. is trading at a lower price-to-earnings ratio than Eagle Materials, indicating that it is currently the more affordable of the two stocks.

Dividends

Eagle Materials pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. Cementos Pacasmayo S.A.A. pays an annual dividend of $0.56 per share and has a dividend yield of 4.3%. Eagle Materials pays out 8.3% of its earnings in the form of a dividend. Cementos Pacasmayo S.A.A. pays out 62.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Eagle Materials and Cementos Pacasmayo S.A.A., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Materials	1	10	0	0	1.91
Cementos Pacasmayo S.A.A.	0	3	1	0	2.25

Eagle Materials currently has a consensus price target of $193.78, suggesting a potential upside of 7.27%. Cementos Pacasmayo S.A.A. has a consensus price target of $12.98, suggesting a potential upside of 0.54%. Given Eagle Materials’ higher possible upside, equities research analysts plainly believe Eagle Materials is more favorable than Cementos Pacasmayo S.A.A..

Profitability

This table compares Eagle Materials and Cementos Pacasmayo S.A.A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Materials	16.11%	25.16%	9.68%
Cementos Pacasmayo S.A.A.	11.22%	20.10%	8.31%

Summary

Eagle Materials beats Cementos Pacasmayo S.A.A. on 13 of the 16 factors compared between the two stocks.

About Eagle Materials

Eagle Materials Inc. is a U.S.-based producer of building materials used in residential, commercial and infrastructure construction. Its products include cement, ready-mixed concrete, aggregates, gypsum wallboard and recycled paperboard. The company operates through businesses focused on cement and concrete products, gypsum wallboard, and paperboard. Its gypsum operations also produce materials used in wallboard finishing, while its paperboard business makes recycled paperboard used in packaging and other applications.

About Cementos Pacasmayo S.A.A.

Cementos Pacasmayo S.A.A. is a Peruvian building materials company focused on producing and selling cement and related construction products. Its offerings include concrete, precast concrete products, aggregates and lime, serving residential, commercial and infrastructure construction needs. Founded in 1949, the company has a long-standing presence in northern Peru. It operates cement plants in Pacasmayo, Piura and Rioja, and distributes products through its commercial network, including the DINO brand.