Reviewing Holcim (OTCMKTS:HCMLY) & Knife River (NYSE:KNF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Holcim	N/A	N/A	N/A
Knife River	4.58%	9.35%	3.96%

Risk and Volatility

Holcim has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Knife River has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Holcim and Knife River, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Holcim	0	4	4	4	3.00
Knife River	1	3	6	0	2.50

Holcim currently has a consensus price target of $16.80, indicating a potential downside of 13.80%. Knife River has a consensus price target of $98.00, indicating a potential upside of 24.95%. Given Knife River’s higher probable upside, analysts plainly believe Knife River is more favorable than Holcim.

Institutional & Insider Ownership

0.0% of Holcim shares are owned by institutional investors. Comparatively, 80.1% of Knife River shares are owned by institutional investors. 0.4% of Knife River shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Holcim and Knife River”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Holcim	$18.97 billion	2.91	$15.91 billion	N/A	N/A
Knife River	$3.15 billion	1.41	$157.07 million	$2.57	30.52

Holcim has higher revenue and earnings than Knife River.

Summary

Knife River beats Holcim on 7 of the 13 factors compared between the two stocks.

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.

About Knife River

Knife River Corporation, together with its subsidiaries, provides aggregates- led construction materials and contracting services in the United States. It operates through Pacific, Northwest, Mountain, Central, and Energy Services segments. The company mines, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete. It also provides contracting service, such as heavy-civil construction, asphalt and concrete paving, and site development and grading. In addition, the company sells cement, merchandise, and other building materials and related services. The company sells its construction materials to public and private-sector customers, including federal, state, and municipal governments, as well as industrial, commercial and residential developers, and other private parties; and provides its contracting services to public-sector customers for the development and servicing of highways, local roads, bridges, and other public-infrastructure projects. Knife River Corporation was founded in 1917 and is based in Bismarck, North Dakota.