James Hardie Industries PLC. (NYSE: JHX) and Eagle Materials (NYSE:EXP) are both mid-cap construction companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.
Institutional & Insider Ownership
0.5% of James Hardie Industries PLC. shares are held by institutional investors. Comparatively, 93.1% of Eagle Materials shares are held by institutional investors. 4.1% of Eagle Materials shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
James Hardie Industries PLC. has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Eagle Materials has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
James Hardie Industries PLC. pays an annual dividend of $0.29 per share and has a dividend yield of 2.0%. Eagle Materials pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. James Hardie Industries PLC. pays out 19.5% of its earnings in the form of a dividend. Eagle Materials pays out 9.3% 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. James Hardie Industries PLC. has increased its dividend for 3 consecutive years. James Hardie Industries PLC. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares James Hardie Industries PLC. and Eagle Materials’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|James Hardie Industries PLC.||12.65%||-93.26%||12.48%|
This is a breakdown of current ratings and recommmendations for James Hardie Industries PLC. and Eagle Materials, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|James Hardie Industries PLC.||0||0||1||0||3.00|
Eagle Materials has a consensus price target of $105.00, suggesting a potential upside of 18.98%. Given Eagle Materials’ higher probable upside, analysts plainly believe Eagle Materials is more favorable than James Hardie Industries PLC..
Valuation and Earnings
This table compares James Hardie Industries PLC. and Eagle Materials’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|James Hardie Industries PLC.||$1.95 billion||3.25||$429.50 million||$1.49||9.64|
|Eagle Materials||$1.28 billion||3.34||$394.28 million||$4.30||20.52|
James Hardie Industries PLC. has higher revenue and earnings than Eagle Materials. James Hardie Industries PLC. is trading at a lower price-to-earnings ratio than Eagle Materials, indicating that it is currently the more affordable of the two stocks.
Eagle Materials beats James Hardie Industries PLC. on 10 of the 16 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.
Eagle Materials Company Profile
Eagle Materials Inc. is a supplier of construction products, building materials and materials used for oil and natural gas extraction. The Company operates through five segments: Cement, Concrete and Aggregates, Gypsum Wallboard, Recycled Paperboard, and Oil and Gas Proppants. The Company’s construction products are used in residential, industrial, commercial and infrastructure construction, and include cement, slag, concrete and aggregates. Its building materials include gypsum wallboard. Its basic material used for oil and natural gas extraction include frac sand and oil well cement. It sells cement in over six regional markets, including northern Nevada and California, the greater Chicago area, the Rocky Mountain region, the Central Plains region and Texas. It sells slag in the greater Chicago, Illinois area and the greater Midwest area. It has approximately three concrete and aggregates businesses. It also operates a recycled paperboard business.
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