Critical Contrast: Argan (NYSE:AGX) and Holcim (OTCMKTS:HCMLY)

Argan (NYSE:AGX) and Holcim (OTCMKTS:HCMLY) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Risk and Volatility

Argan has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Holcim has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Argan and Holcim, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argan	0	4	4	0	2.50
Holcim	0	4	4	4	3.00

Argan currently has a consensus target price of $470.40, suggesting a potential downside of 32.37%. Holcim has a consensus target price of $16.80, suggesting a potential downside of 9.12%. Given Holcim’s stronger consensus rating and higher possible upside, analysts clearly believe Holcim is more favorable than Argan.

Profitability

This table compares Argan and Holcim’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Argan	15.48%	37.94%	15.51%
Holcim	N/A	N/A	N/A

Insider & Institutional Ownership

79.4% of Argan shares are owned by institutional investors. Comparatively, 0.0% of Holcim shares are owned by institutional investors. 6.7% of Argan shares are owned by 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.

Valuation and Earnings

This table compares Argan and Holcim”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argan	$944.61 million	10.27	$137.77 million	$9.74	71.41
Holcim	$18.97 billion	2.76	$15.91 billion	N/A	N/A

Holcim has higher revenue and earnings than Argan.

About Argan

Argan, Inc., through its subsidiaries, provides engineering, procurement, construction, commissioning, maintenance, project development, and technical consulting services to the power generation market. The company operates through Power Services, Industrial Services, and Telecom Services segments. The Power Services segment offers engineering, procurement, and construction, as well as designing, building, and commissioning of large-scale energy projects to the owners of alternative energy facilities, such as biomass plants, wind farms, and solar fields; and design, construction, project management, start-up, and operation services for projects with approximately 18 gigawatts of power-generating capacity. This segment serves independent power project owners, public utilities, power plant equipment suppliers, and other commercial firms. The Industrial Services segment provides industrial construction and field services and vessel fabrication services for fertilizer, engineering and construction, forest products, and various other industrial companies in southeast region of the United States. The Telecom Services segment offers trenchless directional boring and excavation for underground communication and power networks, as well as aerial cabling services; and installs buried cable, high and low voltage electric lines, and private area outdoor lighting systems. It also provides structured cabling, terminations, and connectivity that offers the physical transport for high-speed data, voice, video, and security networks. This segment serves electricity cooperative, state and local government agencies, counties and municipalities, and technology-oriented government contracting firms, as well as federal government facilities in the mid-Atlantic region of the United States. Argan, Inc. was incorporated in 1961 and is headquartered in Rockville, Maryland.

About Holcim

Holcim AG, together with its subsidiaries, operates as a building materials and solutions company worldwide. It operates through North America; Latin America; Europe; Asia, Middle East & Africa; and Solutions & Products segments. The company offers cement, clinker, and other cementitious materials; ready-mix concrete; aggregates, such as crushed stone, gravel, and sand; and precast, concrete products, asphalts, mortars, roofing systems, insulation tile adhesives, facade solutions, and contracting and services. It also engages in distribution and retail activities comprising product availability and deliveries, in-store animation and shopping experience, one-stop retail shop, digital services and solutions, and financing and cash-flow solutions; and waste management services. The company's products are used in infrastructure projects, such as tunnels, railways and train stations, airports and ports, and bridges; housing projects, including individual and collective housing; commercial projects comprising offices, retail, and public buildings; and industrial projects consisting of renewable energy, oil and gas, and mining. It sells under the ECOPact, ECOPlanet, ECOCycle, Airium, DYNAMax, Aggneo, Ductal, Hydromedia, TectorPrint, Aggregate Industries, Disensa, Duro-Last, Elevate, Geocycle, Holcim, Lafarge, Malarkey Roofing Products, and PRB Group brands. The company was formerly known as LafargeHolcim Ltd and changed its name to Holcim AG in May 2021. The company was founded in 1833 and is headquartered in Zug, Switzerland.