Financial Analysis: Vulcan Materials Company (NYSE:VMC) vs. CRH PLC (CRH)
CRH PLC (NYSE: CRH) and Vulcan Materials Company (NYSE:VMC) are both large-cap construction companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitabiliy, valuation, analyst recommendations, institutional ownership and risk.
CRH PLC pays an annual dividend of $0.71 per share and has a dividend yield of 2.0%. Vulcan Materials Company pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. Vulcan Materials Company pays out 32.2% of its earnings in the form of a dividend. CRH PLC has increased its dividend for 3 consecutive years. CRH PLC is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares CRH PLC and Vulcan Materials Company’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vulcan Materials Company||11.61%||8.80%||4.70%|
Institutional and Insider Ownership
4.5% of CRH PLC shares are owned by institutional investors. Comparatively, 86.0% of Vulcan Materials Company shares are owned by institutional investors. 0.9% of Vulcan Materials Company shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings and Valuation
This table compares CRH PLC and Vulcan Materials Company’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|CRH PLC||$31.01 billion||0.97||$3.55 billion||N/A||N/A|
|Vulcan Materials Company||$3.63 billion||4.55||$948.12 million||$3.11||40.18|
CRH PLC has higher revenue and earnings than Vulcan Materials Company.
Risk and Volatility
CRH PLC has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Vulcan Materials Company has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for CRH PLC and Vulcan Materials Company, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vulcan Materials Company||0||4||4||0||2.50|
Vulcan Materials Company has a consensus target price of $137.00, suggesting a potential upside of 9.64%. Given Vulcan Materials Company’s stronger consensus rating and higher possible upside, analysts plainly believe Vulcan Materials Company is more favorable than CRH PLC.
Vulcan Materials Company beats CRH PLC on 10 of the 16 factors compared between the two stocks.
About CRH PLC
CRH public limited company (CRH plc) is a building materials company. The Company’s segments include Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products, Americas Distribution and Asia. Europe Heavyside segment is engaged in the manufacturing and supply of aggregates, asphalt, cement, readymixed and precast concrete and landscaping products. Europe Lightside segment manufactures and supplies products and solutions for customers in global construction markets. Through its Europe Distribution segment, the Company distributes building materials to professional builders, specialist heating and plumbing contractors, and Do-It-Yourself (DIY) customers. Americas Materials segment is a vertically integrated supplier of aggregates, asphalt, cement, readymixed concrete and paving and construction services. Through Americas Distribution segment, the Company is a distributor of roofing, siding, drywall, ceiling systems and related accessories.
About Vulcan Materials Company
Vulcan Materials Company is a supplier of construction aggregates (primarily crushed stone, sand and gravel) and a producer of asphalt mix and ready-mixed concrete. The Company operates through four segments: Aggregates, Asphalt Mix, Concrete and Calcium. The Aggregates segment produces and sells aggregates (crushed stone, sand and gravel, sand, and other aggregates) and related products and services (transportation and other). The Company produces and sells asphalt mix in Arizona, California, New Mexico and Texas. The Company produces and sells ready-mixed concrete in Georgia, Maryland, New Mexico, Texas, Virginia, Washington District of Columbia and the Bahamas. The Calcium segment consists of a Florida facility that mines, produces and sells calcium products. As of December 31, 2016, it had 337 active aggregates facilities. The Company sells aggregates that are used as ballast for construction and maintenance of railroad tracks.
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