Monarch Cement (MCEM) versus USG (USG) Financial Review

Monarch Cement (OTCMKTS:MCEM) and USG (NYSE:USG) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Dividends

Monarch Cement pays an annual dividend of $1.60 per share and has a dividend yield of 2.3%. USG does not pay a dividend.

Volatility and Risk

Monarch Cement has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, USG has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Monarch Cement and USG, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monarch Cement 0 0 0 0 N/A
USG 0 10 1 0 2.09

USG has a consensus price target of $41.58, indicating a potential downside of 2.57%. Given USG’s higher probable upside, analysts clearly believe USG is more favorable than Monarch Cement.

Valuation and Earnings

This table compares Monarch Cement and USG’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Monarch Cement $165.23 million 1.63 $21.16 million N/A N/A
USG $3.20 billion 1.86 $88.00 million $1.80 23.67

USG has higher revenue and earnings than Monarch Cement.

Profitability

This table compares Monarch Cement and USG’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monarch Cement N/A N/A N/A
USG 2.75% 13.93% 6.71%

Insider and Institutional Ownership

0.4% of Monarch Cement shares are owned by institutional investors. Comparatively, 80.3% of USG shares are owned by institutional investors. 26.0% of Monarch Cement shares are owned by insiders. Comparatively, 0.7% of USG shares are owned by 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.

Summary

USG beats Monarch Cement on 10 of the 12 factors compared between the two stocks.

Monarch Cement Company Profile

The Monarch Cement Company manufactures and sells cement products in the United States. It primarily offers Portland cement and masonry cement. The company also sells ready-mixed concrete, concrete products, and sundry building materials. It primarily serves contractors, ready-mixed concrete plants, concrete products plants, building materials dealers, and governmental agencies. The company sells its products primarily in the Kansas, Iowa, southeast Nebraska, western Missouri, northwest Arkansas, and northern Oklahoma. The Monarch Cement Company was founded in 1908 and is based in Humboldt, Kansas.

USG Company Profile

USG Corporation, through its subsidiaries, manufactures and sells building materials worldwide. The company's Gypsum division manufactures and markets gypsum and related products to construct walls, ceilings, roofs, and floors of residential, commercial, and institutional buildings, as well as for various industrial applications. This segment offers gypsum panels, as well as joint compounds, corner beads, joint tapes, and plasters for wallboard joints finishing under the Sheetrock brand; cement board and shower systems under the Durock brand; backer board that includes abuse-resistant interior wall panels, tile backer boards, and flooring underlayment under the Fiberock brand; poured gypsum flooring systems under the Levelrock brand; roof boards under the Securock brand; and air barrier systems under the ExoAir 430 brand. It also provides construction plaster products under the Red Top, Imperial, Diamond, and Supremo brands; and gypsum-based products for agricultural and industrial customers. The company's Ceilings division manufactures and markets interior system products, including ceiling tiles under the Radar, Eclipse, Mars, and Halcyon brands; ceiling grids under the Donn, DX, Fineline, Centricitee, and Identitee DXI brands; specialty ceilings under the Curvatura, Compasso, Radians, Illusions, Multiples, Runways, Barz, Planx, Mirra, Corniche, Wallforms, and Parti brands; and monolithic drywall under the Ensemble brand. Its USG Boral Building Products segment manufactures, distributes, and sells various building products and mines raw gypsum, as well as sells natural and synthetic gypsum. This segment offers products under the USG Boral Sheetrock, USG Boral NextGen, Elephant, Jayaboard, Durock, and Donn DX brands. The company distributes its products through building materials dealers, home improvement centers and other retailers, specialty wallboard distributors, and contractors. USG Corporation was founded in 1901 and is headquartered in Chicago, Illinois.

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