Financial Comparison: China Resources Cement (OTCMKTS:CARCY) and Vulcan Materials (NYSE:VMC)

China Resources Cement (OTCMKTS:CARCY) and Vulcan Materials (NYSE:VMC) are both construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Risk and Volatility

China Resources Cement has a beta of -0.02, suggesting that its share price is 102% less volatile than the S&P 500. Comparatively, Vulcan Materials has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Institutional & Insider Ownership

90.4% of Vulcan Materials shares are owned by institutional investors. 0.6% of Vulcan Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares China Resources Cement and Vulcan Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Resources Cement	1.53%	0.73%	0.46%
Vulcan Materials	12.52%	12.81%	6.41%

Dividends

China Resources Cement pays an annual dividend of $0.06 per share and has a dividend yield of 0.9%. Vulcan Materials pays an annual dividend of $1.96 per share and has a dividend yield of 0.6%. China Resources Cement pays out 30.0% of its earnings in the form of a dividend. Vulcan Materials pays out 27.4% 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. Vulcan Materials has raised its dividend for 12 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for China Resources Cement and Vulcan Materials, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Resources Cement	0	0	0	0	0.00
Vulcan Materials	0	2	10	2	3.00

Vulcan Materials has a consensus target price of $308.36, indicating a potential upside of 2.18%. Given Vulcan Materials’ stronger consensus rating and higher probable upside, analysts clearly believe Vulcan Materials is more favorable than China Resources Cement.

Earnings and Valuation

This table compares China Resources Cement and Vulcan Materials”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Resources Cement	$3.20 billion	N/A	$29.33 million	$0.20	33.78
Vulcan Materials	$7.42 billion	5.38	$911.90 million	$7.16	42.15

Vulcan Materials has higher revenue and earnings than China Resources Cement. China Resources Cement is trading at a lower price-to-earnings ratio than Vulcan Materials, indicating that it is currently the more affordable of the two stocks.

Summary

Vulcan Materials beats China Resources Cement on 16 of the 17 factors compared between the two stocks.

About China Resources Cement

China Resources Building Materials Technology Holdings Limited, an investment holding company, manufactures and sells cement, concrete, aggregates, and related products and services in Mainland China. It operates through Cement, Concrete, and Aggregates and Others segments. The company engages in the excavation of limestone; and production, sale, and distribution of cement, clinker, and concrete. The company's products are used in the construction of infrastructure projects, such as railways, highways, subways, bridges, airports, ports, dams, and hydroelectric and nuclear power stations, as well as high-rise buildings, and suburban and rural area development. It also engages in the manufacture and sale of engineered and natural stones, and other products; prefabricated construction materials; mining of aggregates; marine transportation activities; provides environmental protection engineering, and warehouse management and fuel supply services; and offers building materials testing and consultancy services. In addition, the company trades in steel pipes, aggregates, and construction materials; and holds properties. The company was formerly known as China Resources Cement Holdings Limited and changed its name to China Resources Building Materials Technology Holdings Limited in November 2023. The company was founded in 1998 and is headquartered in Wan Chai, Hong Kong. China Resources Building Materials Technology Holdings Limited is a subsidiary of CRH (Cement) Limited.

About Vulcan Materials

Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The company provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities. It also offers asphalt mix and asphalt construction paving services; ready-mixed concrete; and calcium products for the animal feed, plastics, and water treatment industries. The company was formerly known as Virginia Holdco, Inc. and changed its name to Vulcan Materials Company. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.