Head to Head Survey: GCC (OTCMKTS:GCWOF) vs. Cementos Pacasmayo S.A.A. (NYSE:CPAC)

GCC (OTCMKTS:GCWOF) and Cementos Pacasmayo S.A.A. (NYSE:CPAC) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Profitability

This table compares GCC and Cementos Pacasmayo S.A.A.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCC	N/A	N/A	N/A
Cementos Pacasmayo S.A.A.	9.42%	16.49%	6.74%

Valuation & Earnings

This table compares GCC and Cementos Pacasmayo S.A.A.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GCC	N/A	N/A	N/A	$1.90	6.04
Cementos Pacasmayo S.A.A.	$593.95 million	1.79	$43.27 million	$0.72	17.38

Cementos Pacasmayo S.A.A. has higher revenue and earnings than GCC. GCC is trading at a lower price-to-earnings ratio than Cementos Pacasmayo S.A.A., indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

4.4% of GCC shares are held by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

GCC pays an annual dividend of $0.17 per share and has a dividend yield of 1.5%. Cementos Pacasmayo S.A.A. pays an annual dividend of $0.56 per share and has a dividend yield of 4.5%. GCC pays out 8.9% of its earnings in the form of a dividend. Cementos Pacasmayo S.A.A. pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current recommendations and price targets for GCC and Cementos Pacasmayo S.A.A., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCC	0	0	1	0	3.00
Cementos Pacasmayo S.A.A.	0	4	0	0	2.00

Cementos Pacasmayo S.A.A. has a consensus target price of $13.00, suggesting a potential upside of 3.92%. Given Cementos Pacasmayo S.A.A.’s higher probable upside, analysts plainly believe Cementos Pacasmayo S.A.A. is more favorable than GCC.

Summary

Cementos Pacasmayo S.A.A. beats GCC on 8 of the 13 factors compared between the two stocks.

About GCC

GCC, S.A.B. de C.V., through its subsidiaries, produces, distributes, and sells gray Portland cement, ready-mix concrete, aggregates, and other building construction materials in Mexico and the United States. It offers cement; ready mix concrete, energy; building materials; and asphalt. The company also provides special products comprising Komponent, a shrinkage-compensating, expanding concrete additive; Metaforce, a reactive and consistent pozzolan that is used as an alternative for fly ash; Microsilex to be used in bridge decks and paving; Rapid Set, a solution for concrete applications; and Versabind, a cementitious that is used as filler in asphalt mixes as a replacement for lime. It distributes its products through distribution centers and independent wholesale distributors. The company was formerly known as Grupo Cementos de Chihuahua, S.A.B. de C.V. and changed its name to GCC, S.A.B. de C.V. in March 2021. The company was founded in 1941 and is based in Chihuahua, Mexico. GCC, S.A.B. de C.V. is a subsidiary of CAMCEM, S.A. de C.V.

About Cementos Pacasmayo S.A.A.

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in Peru. It operates through three segments: Cement, Concrete, Mortar and Precast; Quicklime; and Sales of Construction Supplies. The company’s cement and concrete products are used in residential and commercial construction, and civil engineering; ready-mix concrete used in construction sites; concrete precast, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete precast for structural and non-structural uses; and cement-based products. It also produces and distributes quicklime for use in steel, food, fishing, and chemical industries. In addition, the company sells and distributes other construction materials manufactured by third parties, such as steel rebar, plastic pipes, and electrical wires. It offers its products directly to other retailers, private construction companies, and government entities through a network of independent retailers and hardware stores. The company was incorporated in 1949 and is headquartered in Lima, Peru. Cementos Pacasmayo S.A.A. is a subsidiary of Inversiones ASPI S.A.