Analyzing Vulcan Materials (VMC) and Texas Industries (TXI)

Vulcan Materials (NYSE: VMC) and Texas Industries (NYSE:TXI) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.

Analyst Recommendations

This is a breakdown of current ratings for Vulcan Materials and Texas Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vulcan Materials 0 2 5 0 2.71
Texas Industries 0 1 0 0 2.00

Vulcan Materials presently has a consensus target price of $137.57, suggesting a potential upside of 13.13%. Texas Industries has a consensus target price of $82.00, suggesting a potential downside of 10.97%. Given Vulcan Materials’ stronger consensus rating and higher probable upside, analysts clearly believe Vulcan Materials is more favorable than Texas Industries.

Valuation & Earnings

This table compares Vulcan Materials and Texas Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vulcan Materials $3.70 billion 4.35 $940.88 million $3.09 39.36
Texas Industries N/A N/A N/A N/A N/A

Vulcan Materials has higher revenue and earnings than Texas Industries.

Profitability

This table compares Vulcan Materials and Texas Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vulcan Materials 11.28% 8.72% 4.48%
Texas Industries N/A N/A N/A

Dividends

Vulcan Materials pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. Texas Industries does not pay a dividend. Vulcan Materials pays out 32.4% of its earnings in the form of a dividend. Texas Industries has increased its dividend for 3 consecutive years.

Institutional and Insider Ownership

87.1% of Vulcan Materials shares are owned by institutional investors. 0.9% of Vulcan Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Vulcan Materials beats Texas Industries on 10 of the 12 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.

Texas Industries Company Profile

Texas Industries, Inc. is a supplier of construction materials in the southwestern United States. The Company operates in three segments: cement, aggregates and consumer products. Its cement segment produces gray portland cement and specialty cements. The Company’s cement production and distribution facilities are concentrated primarily in Texas and California. Its aggregates segment produces natural aggregates, including sand, gravel and crushed limestone. The Company’s consumer products segment produces ready-mix concrete. It is also a supplier of natural aggregates and ready-mix concrete in Texas and northern Louisiana and in Oklahoma and Arkansas. As of May 31, 2013, the Company had 123 manufacturing facilities in five states. During the fiscal year ended May 31, 2013 (fiscal 2013), it produced approximately 4.3 million tons of finished cement. The Company produced approximately 14.2 million tons of natural aggregates during fiscal 2013.

What are top analysts saying about Vulcan Materials Company? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Vulcan Materials Company and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit