Cementos Pacasmayo S.A.A. (NYSE:CPAC) versus Martin Marietta Materials (NYSE:MLM) Head to Head Contrast

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

Dividends

Martin Marietta Materials pays an annual dividend of $3.36 per share and has a dividend yield of 0.6%. Cementos Pacasmayo S.A.A. pays an annual dividend of $0.56 per share and has a dividend yield of 4.4%. Martin Marietta Materials pays out 8.3% of its earnings in the form of a dividend. Cementos Pacasmayo S.A.A. pays out 62.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Martin Marietta Materials has raised its dividend for 9 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Martin Marietta Materials and Cementos Pacasmayo S.A.A., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Martin Marietta Materials	2	5	13	0	2.55
Cementos Pacasmayo S.A.A.	0	3	1	0	2.25

Martin Marietta Materials presently has a consensus target price of $639.59, indicating a potential upside of 18.22%. Cementos Pacasmayo S.A.A. has a consensus target price of $12.98, indicating a potential upside of 1.56%. Given Martin Marietta Materials’ stronger consensus rating and higher possible upside, analysts plainly believe Martin Marietta Materials is more favorable than Cementos Pacasmayo S.A.A..

Volatility and Risk

Martin Marietta Materials has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Cementos Pacasmayo S.A.A. has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Valuation & Earnings

This table compares Martin Marietta Materials and Cementos Pacasmayo S.A.A.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Martin Marietta Materials	$6.15 billion	5.28	$1.14 billion	$40.70	13.29
Cementos Pacasmayo S.A.A.	$593.95 million	1.82	$43.27 million	$0.89	14.36

Martin Marietta Materials has higher revenue and earnings than Cementos Pacasmayo S.A.A.. Martin Marietta Materials 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 & Insider Ownership

95.0% of Martin Marietta Materials shares are held by institutional investors. 0.7% of Martin Marietta Materials shares are held by company insiders. Comparatively, 0.2% of Cementos Pacasmayo S.A.A. shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Martin Marietta Materials	36.73%	9.49%	5.11%
Cementos Pacasmayo S.A.A.	11.22%	20.10%	8.31%

Summary

Martin Marietta Materials beats Cementos Pacasmayo S.A.A. on 14 of the 17 factors compared between the two stocks.

About Martin Marietta Materials

Martin Marietta Materials, Inc., a natural resource-based building materials company, supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally. It offers crushed stone, sand, and gravel products; ready mixed concrete and asphalt; paving products and services; and Portland and specialty cement for use in the infrastructure projects, and nonresidential and residential construction markets, as well as in the railroad, agricultural, utility, and environmental industries. The company also produces magnesia-based chemicals products; dolomitic lime primarily to customers for steel production and soil stabilization; and cement treated materials. Its chemical products are used in flame retardants, wastewater treatment, pulp and paper production, and other environmental applications. The company was founded in 1939 and is headquartered in Raleigh, North Carolina.

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.