Eagle Materials (NYSE: EXP) and U S Concrete (NASDAQ:USCR) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their profitabiliy, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Eagle Materials and U S Concrete, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Materials 0 0 5 0 3.00
U S Concrete 0 0 2 0 3.00

Eagle Materials presently has a consensus price target of $105.00, indicating a potential upside of 12.87%. U S Concrete has a consensus price target of $77.00, indicating a potential downside of 0.71%. Given Eagle Materials’ higher possible upside, equities analysts plainly believe Eagle Materials is more favorable than U S Concrete.

Volatility & Risk

Eagle Materials has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, U S Concrete has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Insider and Institutional Ownership

92.4% of Eagle Materials shares are held by institutional investors. 4.1% of Eagle Materials shares are held by company insiders. Comparatively, 5.9% of U S Concrete shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Eagle Materials pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. U S Concrete does not pay a dividend. Eagle Materials pays out 9.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Eagle Materials and U S Concrete’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eagle Materials $1.28 billion 3.52 $394.28 million $4.30 21.63
U S Concrete $1.22 billion 0.99 $160.84 million $1.52 51.02

Eagle Materials has higher revenue and earnings than U S Concrete. Eagle Materials is trading at a lower price-to-earnings ratio than U S Concrete, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Eagle Materials and U S Concrete’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Materials 16.23% 18.29% 10.27%
U S Concrete 2.11% 24.23% 4.56%

Summary

Eagle Materials beats U S Concrete on 10 of the 14 factors compared between the two stocks.

Eagle Materials Company Profile

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.

U S Concrete Company Profile

U.S. Concrete, Inc. is a producer of ready-mixed concrete in select geographic markets in the United States. The Company conducts its operations through two business segments: ready-mixed concrete and aggregate products. The ready-mixed concrete segment engages principally in the formulation, production and delivery of ready-mixed concrete to its customers’ job sites. The aggregate products segment produces crushed stone, sand and gravel. The Company’ other products include its building materials stores, hauling operations, aggregates distribution terminals, lime slurry, brokered product sales, a recycled aggregates operation, and concrete blocks. The Company also offers the ARIDUS Rapid Drying Concrete technology. As of April 10, 2017, the Company operated 155 standard ready-mixed concrete plants, 16 volumetric ready-mixed concrete plants, 17 producing aggregates facilities, three aggregates distribution terminals, two lime slurry facilities, and one recycled aggregates facility.

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