Financial Review: Cementos Pacasmayo S.A.A. (CPAC) versus James Hardie Industries plc (JHX)
James Hardie Industries plc (NYSE: JHX) and Cementos Pacasmayo S.A.A. (NYSE:CPAC) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitabiliy, valuation, institutional ownership, analyst recommendations, risk and dividends.
James Hardie Industries plc pays an annual dividend of $0.29 per share and has a dividend yield of 1.9%. Cementos Pacasmayo S.A.A. pays an annual dividend of $0.38 per share and has a dividend yield of 3.3%. James Hardie Industries plc pays out 16.2% of its earnings in the form of a dividend. Cementos Pacasmayo S.A.A. pays out 126.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. James Hardie Industries plc has raised its dividend for 3 consecutive years.
This is a summary of current recommendations and price targets for James Hardie Industries plc and Cementos Pacasmayo S.A.A., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|James Hardie Industries plc||0||1||1||0||2.50|
|Cementos Pacasmayo S.A.A.||0||1||0||0||2.00|
Cementos Pacasmayo S.A.A. has a consensus price target of $11.00, indicating a potential downside of 3.85%. Given Cementos Pacasmayo S.A.A.’s higher probable upside, analysts clearly believe Cementos Pacasmayo S.A.A. is more favorable than James Hardie Industries plc.
Valuation & Earnings
This table compares James Hardie Industries plc and Cementos Pacasmayo S.A.A.’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|James Hardie Industries plc||$1.92 billion||3.53||$436.50 million||$1.79||8.58|
|Cementos Pacasmayo S.A.A.||N/A||N/A||N/A||$0.30||38.13|
James Hardie Industries plc has higher revenue and earnings than Cementos Pacasmayo S.A.A.. James Hardie Industries plc is trading at a lower price-to-earnings ratio than Cementos Pacasmayo S.A.A., indicating that it is currently the more affordable of the two stocks.
This table compares James Hardie Industries plc and Cementos Pacasmayo S.A.A.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|James Hardie Industries plc||9.00%||N/A||9.10%|
|Cementos Pacasmayo S.A.A.||9.18%||5.80%||3.40%|
Risk and Volatility
James Hardie Industries plc has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Cementos Pacasmayo S.A.A. has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.
Insider and Institutional Ownership
0.8% of James Hardie Industries plc shares are held by institutional investors. Comparatively, 4.4% of Cementos Pacasmayo S.A.A. shares are held by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
James Hardie Industries plc beats Cementos Pacasmayo S.A.A. on 8 of the 14 factors compared between the two stocks.
James Hardie Industries plc Company Profile
James Hardie Industries Plc is a manufacturer of fiber cement products and systems for internal and external building construction applications in the United States, Australia, New Zealand, and the Philippines. The Company’s operating segments are North America and Europe Fiber Cement, and Asia Pacific Fiber Cement. The North America and Europe Fiber Cement manufactures fiber cement interior linings, exterior siding products and related accessories in the United States. The Asia Pacific Fiber Cement includes fiber cement manufactured in Australia, New Zealand and the Philippines, and sold in Australia, New Zealand, Asia, the Middle East (Israel, Saudi Arabia, Lebanon and the United Arab Emirates) and various Pacific Islands. The Company offers a range of fiber-cement building materials for both internal and external use across a range of applications, including external siding, internal walls, floors, ceilings, trim, fencing and facades.
Cementos Pacasmayo S.A.A. Company Profile
Pacasmayo Cement Corp, formerly Cementos Pacasmayo SAA, is a Peru-based company principally engaged in the production, distribution and sale of construction materials. The Company is active in the development of traditional and blended cement, ready-mix concrete, mortars, quicklime, concrete blocks, diatomite bricks and aggregates, among others. It manages mining units and exploration projects located in the provinces of Rioja, Tembladera, Bongara and Bayovar. Additionally, the Company provides various services and construction solutions, such as concrete pumping, metal shuttering systems, pavement service and delivery of construction materials. The Company owns such subsidiaries as Distribuidora Norte Pacasmayo SRL, Salmueras Sudamericanas SA, Fosfatos del Pacifico SA, Cementos Selva SA, Empresa de Transmison Guadalupe SAC and Zemex LLC.
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