Martin Marietta Materials (NYSE: MLM) and CRH PLC (NYSE:CRH) are both large-cap construction companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitabiliy and analyst recommendations.

Profitability

This table compares Martin Marietta Materials and CRH PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Martin Marietta Materials 10.91% 10.32% 5.77%
CRH PLC N/A N/A N/A

Valuation & Earnings

This table compares Martin Marietta Materials and CRH PLC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Martin Marietta Materials $3.63 billion 3.85 $947.48 million $6.61 33.78
CRH PLC $31.01 billion 0.97 $3.55 billion N/A N/A

CRH PLC has higher revenue and earnings than Martin Marietta Materials.

Dividends

Martin Marietta Materials pays an annual dividend of $1.68 per share and has a dividend yield of 0.8%. CRH PLC pays an annual dividend of $0.71 per share and has a dividend yield of 2.0%. Martin Marietta Materials pays out 25.4% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings for Martin Marietta Materials and CRH PLC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Martin Marietta Materials 0 5 4 0 2.44
CRH PLC 1 3 3 0 2.29

Martin Marietta Materials presently has a consensus price target of $229.67, suggesting a potential upside of 2.86%. Given Martin Marietta Materials’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Martin Marietta Materials is more favorable than CRH PLC.

Volatility and Risk

Martin Marietta Materials has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, CRH PLC has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Insider and Institutional Ownership

96.3% of Martin Marietta Materials shares are owned by institutional investors. Comparatively, 4.5% of CRH PLC shares are owned by institutional investors. 1.1% of Martin Marietta Materials shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Martin Marietta Materials beats CRH PLC on 11 of the 15 factors compared between the two stocks.

Martin Marietta Materials Company Profile

Martin Marietta Materials, Inc. is a supplier of aggregates products (crushed stone, sand, and gravel) used for the construction of infrastructure, nonresidential, and residential projects. Aggregates products are also used for railroad ballast and in agricultural, utility and environmental applications. The Company’s Aggregates business operates through three segments: the Mid-America Group, Southeast Group and West Group. The Company’s business is categorized into Aggregates Business, Cement Business and Magnesia Specialties Business. Its Cement business is reported through the Cement segment. Its Magnesia Specialties business manufactures and markets magnesia-based chemical products used in industrial, agricultural, and environmental applications, and dolomitic lime sold to customers in the steel industry. Its Cement business produces Portland and specialty cements. It manufactures and markets, through its Magnesia Specialties business, magnesia-based chemical products.

CRH PLC Company Profile

CRH public limited company (CRH plc) is a building materials company. The Company’s segments include Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products, Americas Distribution and Asia. Europe Heavyside segment is engaged in the manufacturing and supply of aggregates, asphalt, cement, readymixed and precast concrete and landscaping products. Europe Lightside segment manufactures and supplies products and solutions for customers in global construction markets. Through its Europe Distribution segment, the Company distributes building materials to professional builders, specialist heating and plumbing contractors, and Do-It-Yourself (DIY) customers. Americas Materials segment is a vertically integrated supplier of aggregates, asphalt, cement, readymixed concrete and paving and construction services. Through Americas Distribution segment, the Company is a distributor of roofing, siding, drywall, ceiling systems and related accessories.

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