Critical Analysis: Loma Negra Compania Indl Argentina (LOMA) and Eagle Materials (EXP)

Loma Negra Compania Indl Argentina (NYSE: LOMA) and Eagle Materials (NYSE:EXP) are both mid-cap construction companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Dividends

Eagle Materials pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Loma Negra Compania Indl Argentina does not pay a dividend. Eagle Materials pays out 9.2% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Loma Negra Compania Indl Argentina and Eagle Materials’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Loma Negra Compania Indl Argentina $670.82 million 3.94 $33.25 million N/A N/A
Eagle Materials $1.21 billion 4.41 $198.21 million $4.36 25.17

Eagle Materials has higher revenue and earnings than Loma Negra Compania Indl Argentina.

Profitability

This table compares Loma Negra Compania Indl Argentina and Eagle Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Loma Negra Compania Indl Argentina N/A N/A N/A
Eagle Materials 15.93% 17.75% 9.93%

Institutional & Insider Ownership

91.5% of Eagle Materials shares are held by institutional investors. 4.1% of Eagle Materials shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Loma Negra Compania Indl Argentina and Eagle Materials, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Loma Negra Compania Indl Argentina 0 4 0 0 2.00
Eagle Materials 0 1 3 0 2.75

Loma Negra Compania Indl Argentina currently has a consensus price target of $24.50, suggesting a potential upside of 10.46%. Eagle Materials has a consensus price target of $122.50, suggesting a potential upside of 11.61%. Given Eagle Materials’ stronger consensus rating and higher possible upside, analysts plainly believe Eagle Materials is more favorable than Loma Negra Compania Indl Argentina.

Summary

Eagle Materials beats Loma Negra Compania Indl Argentina on 12 of the 13 factors compared between the two stocks.

About Loma Negra Compania Indl Argentina

Loma Negra Compania Industrial Argentina SA is an Argentina-based company engaged in the cement and concrete segment. The Company focuses on the manufacture and commercialization of cement and related products, such as lime, masonry cement, as well as concrete and aggregates. The Company offers Portland cement, lime and masonry cement packed in bags. Its products are mainly distributed to professionals in the construction and engineering sector. The Company is controlled by Intercement Brasil SA.

About Eagle Materials

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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