Head-To-Head Review: Loma Negra Compania Industrial Argentina (NYSE:LOMA) vs. D.R. Horton (NYSE:DHI)

Loma Negra Compania Industrial Argentina (NYSE:LOMA) and D.R. Horton (NYSE:DHI) are both construction companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Institutional & Insider Ownership

19.3% of Loma Negra Compania Industrial Argentina shares are held by institutional investors. Comparatively, 90.6% of D.R. Horton shares are held by institutional investors. 0.5% of D.R. Horton shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Loma Negra Compania Industrial Argentina and D.R. Horton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loma Negra Compania Industrial Argentina	5.67%	4.34%	2.46%
D.R. Horton	10.47%	14.39%	10.06%

Valuation & Earnings

This table compares Loma Negra Compania Industrial Argentina and D.R. Horton”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loma Negra Compania Industrial Argentina	$767.70 million	1.71	$169.19 million	$0.31	36.26
D.R. Horton	$34.25 billion	1.26	$4.76 billion	$11.59	12.47

D.R. Horton has higher revenue and earnings than Loma Negra Compania Industrial Argentina. D.R. Horton is trading at a lower price-to-earnings ratio than Loma Negra Compania Industrial Argentina, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Loma Negra Compania Industrial Argentina and D.R. Horton, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loma Negra Compania Industrial Argentina	0	1	4	0	2.80
D.R. Horton	2	6	6	1	2.40

Loma Negra Compania Industrial Argentina presently has a consensus target price of $14.80, indicating a potential upside of 31.67%. D.R. Horton has a consensus target price of $157.38, indicating a potential upside of 8.94%. Given Loma Negra Compania Industrial Argentina’s stronger consensus rating and higher probable upside, equities analysts plainly believe Loma Negra Compania Industrial Argentina is more favorable than D.R. Horton.

Volatility & Risk

Loma Negra Compania Industrial Argentina has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, D.R. Horton has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Summary

D.R. Horton beats Loma Negra Compania Industrial Argentina on 11 of the 15 factors compared between the two stocks.

About Loma Negra Compania Industrial Argentina

Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Railroad; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. The company also provides rail transportation services; and treats and recycles industrial waste for use as fuel and raw material. It markets its products under the Loma Negra, San Martín, Plasticor, Cacique Plus, Cacique Max, Loma Negra Plus, and Lomax brands. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima is a subsidiary of Intercement Trading E Inversiones Argentina Sociedad Limitada.

About D.R. Horton

D.R. Horton, Inc. operates as a homebuilding company in East, North, Southeast, South Central, Southwest, and Northwest regions in the United States. It engages in the acquisition and development of land; and construction and sale of residential homes in 118 markets across 33 states under the names of D.R. Horton, America’s Builder, Express Homes, Emerald Homes, and Freedom Homes. The company constructs and sells single-family detached homes; and attached homes, such as townhomes, duplexes, and triplexes. It also provides mortgage financing services; and title insurance policies, and examination and closing services, as well as engages in the residential lot development business. In addition, the company develops, constructs, owns, leases, and sells multi-family and single-family rental properties; and owns non-residential real estate, including ranch land and improvements. It primarily serves homebuyers. D.R. Horton, Inc. was founded in 1978 and is headquartered in Arlington, Texas.