Continental Building Products (NYSE:CBPX) and MONARCH Cem Co/SH (OTCMKTS:MCEM) are both small-cap construction companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, institutional ownership, risk, dividends, analyst recommendations and profitability.

Volatility & Risk

Continental Building Products has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, MONARCH Cem Co/SH has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Profitability

This table compares Continental Building Products and MONARCH Cem Co/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Continental Building Products 14.04% 19.57% 9.69%
MONARCH Cem Co/SH N/A N/A N/A

Dividends

MONARCH Cem Co/SH pays an annual dividend of $1.60 per share and has a dividend yield of 2.3%. Continental Building Products does not pay a dividend.

Analyst Ratings

This is a breakdown of current recommendations for Continental Building Products and MONARCH Cem Co/SH, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Continental Building Products 0 4 3 0 2.43
MONARCH Cem Co/SH 0 0 0 0 N/A

Continental Building Products presently has a consensus target price of $33.50, indicating a potential upside of 12.64%. Given Continental Building Products’ higher probable upside, equities research analysts plainly believe Continental Building Products is more favorable than MONARCH Cem Co/SH.

Earnings & Valuation

This table compares Continental Building Products and MONARCH Cem Co/SH’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Continental Building Products $489.16 million 2.25 $59.84 million $1.33 22.36
MONARCH Cem Co/SH $165.23 million 1.63 $21.16 million N/A N/A

Continental Building Products has higher revenue and earnings than MONARCH Cem Co/SH.

Institutional and Insider Ownership

97.9% of Continental Building Products shares are owned by institutional investors. Comparatively, 0.4% of MONARCH Cem Co/SH shares are owned by institutional investors. 0.5% of Continental Building Products shares are owned by insiders. Comparatively, 26.0% of MONARCH Cem Co/SH shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Continental Building Products beats MONARCH Cem Co/SH on 10 of the 12 factors compared between the two stocks.

About Continental Building Products

Continental Building Products, Inc. manufactures and sells gypsum wallboard and complementary finishing products in the eastern United States and eastern Canada. The company sells its products to gypsum wallboard distributors, buying groups, wholesalers, and mass merchants in the new residential, repair and remodel, and commercial construction markets under the LiftLite, Mold Defense, and Weather Defense brand names. Continental Building Products, Inc. is headquartered in Herndon, Virginia.

About MONARCH Cem Co/SH

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.

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