Eagle Materials (NYSE:EXP) versus PT Semen Indonesia (Persero) Tbk (OTCMKTS:PSGTY) Critical Review

Eagle Materials (NYSE:EXP) and PT Semen Indonesia (Persero) Tbk (OTCMKTS:PSGTY) are both materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Institutional and Insider Ownership

96.1% of Eagle Materials shares are owned by institutional investors. Comparatively, 0.0% of PT Semen Indonesia (Persero) Tbk shares are owned by institutional investors. 1.7% of Eagle Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Eagle Materials and PT Semen Indonesia (Persero) Tbk”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	2.74	$423.81 million	$12.65	16.28
PT Semen Indonesia (Persero) Tbk	N/A	N/A	N/A	$18,720.72	0.00

Eagle Materials has higher revenue and earnings than PT Semen Indonesia (Persero) Tbk. PT Semen Indonesia (Persero) Tbk is trading at a lower price-to-earnings ratio than Eagle Materials, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Eagle Materials and PT Semen Indonesia (Persero) Tbk, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Materials	0	9	1	0	2.10
PT Semen Indonesia (Persero) Tbk	0	0	0	0	0.00

Eagle Materials presently has a consensus price target of $222.56, suggesting a potential upside of 8.04%. Given Eagle Materials’ stronger consensus rating and higher possible upside, equities analysts plainly believe Eagle Materials is more favorable than PT Semen Indonesia (Persero) Tbk.

Profitability

This table compares Eagle Materials and PT Semen Indonesia (Persero) Tbk’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Materials	17.32%	26.87%	10.73%
PT Semen Indonesia (Persero) Tbk	N/A	N/A	N/A

Dividends

Eagle Materials pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. PT Semen Indonesia (Persero) Tbk pays an annual dividend of $5,942.03 per share and has a dividend yield of 365,326.2%. Eagle Materials pays out 7.9% of its earnings in the form of a dividend. PT Semen Indonesia (Persero) Tbk pays out 31.7% 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.

Summary

Eagle Materials beats PT Semen Indonesia (Persero) Tbk on 11 of the 13 factors compared between the two stocks.

About Eagle Materials

Eagle Materials Inc., through its subsidiaries, manufactures and sells heavy construction materials and light building materials in the United States. It operates in four segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement, including Portland limestone cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures, as well as well as containerboard and lightweight packaging grades; manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and mining and sale of aggregates, such as crushed stone, sand, and gravel. Its products are used in commercial and residential construction; public construction projects to build, expand, and repair roads and highways; and repair and remodel activities. The company was formerly known as Centex Construction Products, Inc. and changed its name to Eagle Materials, Inc. in January 2004. Eagle Materials Inc. was founded in 1963 and is headquartered in Dallas, Texas.

About PT Semen Indonesia (Persero) Tbk

PT Semen Indonesia (Persero) Tbk manufactures, packs, and distributes cement in Indonesia and internationally. It operates through Cement Production and Non-Cement Production segments. The company is also involved in limestone and clay mining; cement bag manufacturing; industrial real estate development and building rental; ready-mix concrete and aggregates quarry production; and consulting, mining, trading, transportation, and construction activities. In addition, it engages in the information system, investment, freight forwarding, stevedoring, sea transportation, service logistic management, outsourcing, and building materials businesses, as well as procures public goods and services. The company was formerly known as PT Semen Gresik (Persero) Tbk and changed its name to PT Semen Indonesia (Persero) Tbk in January 2013. PT Semen Indonesia (Persero) Tbk was founded in 1953 and is headquartered in Jakarta Selatan, Indonesia.