Vulcan Materials (NYSE: VMC) and Crh Plc (NYSE:CRH) are both large-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.
Vulcan Materials pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. Crh Plc pays an annual dividend of $0.71 per share and has a dividend yield of 2.1%. Vulcan Materials pays out 32.4% of its earnings in the form of a dividend. Crh Plc has increased its dividend for 3 consecutive years. Crh Plc is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
84.9% of Vulcan Materials shares are held by institutional investors. Comparatively, 4.1% of Crh Plc shares are held by institutional investors. 0.9% of Vulcan Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Vulcan Materials and Crh Plc, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vulcan Materials presently has a consensus price target of $138.60, suggesting a potential upside of 21.61%. Given Vulcan Materials’ stronger consensus rating and higher possible upside, equities analysts plainly believe Vulcan Materials is more favorable than Crh Plc.
Volatility and Risk
Vulcan Materials has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Crh Plc has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
Valuation & Earnings
This table compares Vulcan Materials and Crh Plc’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Vulcan Materials||$3.70 billion||4.07||$940.88 million||$3.09||36.88|
|Crh Plc||$32.01 billion||0.89||$3.66 billion||N/A||N/A|
Crh Plc has higher revenue and earnings than Vulcan Materials.
This table compares Vulcan Materials and Crh Plc’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Vulcan Materials beats Crh Plc on 9 of the 15 factors compared between the two stocks.
Vulcan Materials Company Profile
Vulcan Materials Company is a supplier of construction aggregates (primarily crushed stone, sand and gravel) and a producer of asphalt mix and ready-mixed concrete. The Company operates through four segments: Aggregates, Asphalt Mix, Concrete and Calcium. The Aggregates segment produces and sells aggregates (crushed stone, sand and gravel, sand, and other aggregates) and related products and services (transportation and other). The Company produces and sells asphalt mix in Arizona, California, New Mexico and Texas. The Company produces and sells ready-mixed concrete in Georgia, Maryland, New Mexico, Texas, Virginia, Washington District of Columbia and the Bahamas. The Calcium segment consists of a Florida facility that mines, produces and sells calcium products. As of December 31, 2016, it had 337 active aggregates facilities. The Company sells aggregates that are used as ballast for construction and maintenance of railroad tracks.
Crh Plc Company Profile
CRH public limited company (CRH plc) is a building materials company. The Company’s segments include Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products, Americas Distribution and Asia. Europe Heavyside segment is engaged in the manufacturing and supply of aggregates, asphalt, cement, readymixed and precast concrete and landscaping products. Europe Lightside segment manufactures and supplies products and solutions for customers in global construction markets. Through its Europe Distribution segment, the Company distributes building materials to professional builders, specialist heating and plumbing contractors, and Do-It-Yourself (DIY) customers. Americas Materials segment is a vertically integrated supplier of aggregates, asphalt, cement, readymixed concrete and paving and construction services. Through Americas Distribution segment, the Company is a distributor of roofing, siding, drywall, ceiling systems and related accessories.
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