Head-To-Head Contrast: Vulcan Materials (VMC) versus FORTERRA INC (FRTA)

Vulcan Materials (NYSE: VMC) and FORTERRA INC (NASDAQ:FRTA) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, profitability, earnings, institutional ownership and risk.

Profitability

This table compares Vulcan Materials and FORTERRA INC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vulcan Materials 11.28% 8.72% 4.48%
FORTERRA INC N/A N/A N/A

Earnings & Valuation

This table compares Vulcan Materials and FORTERRA INC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Vulcan Materials $3.70 billion 4.08 $940.88 million $3.09 36.96
FORTERRA INC $1.52 billion 0.20 $179.63 million N/A N/A

Vulcan Materials has higher revenue and earnings than FORTERRA INC.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Vulcan Materials and FORTERRA INC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vulcan Materials 0 3 5 0 2.63
FORTERRA INC 0 7 2 0 2.22

Vulcan Materials presently has a consensus price target of $138.60, indicating a potential upside of 21.37%. FORTERRA INC has a consensus price target of $15.44, indicating a potential upside of 232.70%. Given FORTERRA INC’s higher probable upside, analysts clearly believe FORTERRA INC is more favorable than Vulcan Materials.

Insider & Institutional Ownership

85.6% of Vulcan Materials shares are owned by institutional investors. Comparatively, 98.3% of FORTERRA INC shares are owned by institutional investors. 0.9% of Vulcan Materials shares are owned by company insiders. Comparatively, 0.3% of FORTERRA INC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Vulcan Materials pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. FORTERRA INC does not pay a dividend. Vulcan Materials pays out 32.4% of its earnings in the form of a dividend. FORTERRA INC has increased its dividend for 3 consecutive years.

Summary

Vulcan Materials beats FORTERRA INC on 10 of the 14 factors compared between the two stocks.

About Vulcan Materials

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.

About FORTERRA INC

Forterra, Inc. is a manufacturer of pipe and precast products. The Company offers products for a range of water-related infrastructure applications, including water transmission, distribution and drainage. The Company operates approximately 95 facilities. Its products are available in the United States and Eastern Canada.

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