Head to Head Analysis: China Resources Cement (OTCMKTS:CARCY) and Martin Marietta Materials (NYSE:MLM)

Martin Marietta Materials (NYSE:MLM) and China Resources Cement (OTCMKTS:CARCY) are both construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Profitability

This table compares Martin Marietta Materials and China Resources Cement’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Martin Marietta Materials	16.07%	12.01%	6.39%
China Resources Cement	1.48%	0.73%	0.46%

Volatility and Risk

Martin Marietta Materials has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, China Resources Cement has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Valuation and Earnings

This table compares Martin Marietta Materials and China Resources Cement”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Martin Marietta Materials	$6.54 billion	5.15	$2.00 billion	$17.36	32.19
China Resources Cement	$3.20 billion	0.44	$29.33 million	$0.19	31.62

Martin Marietta Materials has higher revenue and earnings than China Resources Cement. China Resources Cement is trading at a lower price-to-earnings ratio than Martin Marietta Materials, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Martin Marietta Materials and China Resources Cement, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Martin Marietta Materials	0	3	12	2	2.94
China Resources Cement	0	0	0	0	0.00

Martin Marietta Materials presently has a consensus price target of $603.86, indicating a potential upside of 8.04%. Given Martin Marietta Materials’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Martin Marietta Materials is more favorable than China Resources Cement.

Insider & Institutional 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. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Martin Marietta Materials pays an annual dividend of $3.16 per share and has a dividend yield of 0.6%. China Resources Cement pays an annual dividend of $0.06 per share and has a dividend yield of 1.0%. Martin Marietta Materials pays out 18.2% of its earnings in the form of a dividend. China Resources Cement pays out 31.6% 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 increased its dividend for 9 consecutive years.

Summary

Martin Marietta Materials beats China Resources Cement on 17 of the 18 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 China Resources Cement

China Resources Building Materials Technology Holdings Limited, an investment holding company, manufactures and sells cement, concrete, aggregates, and related products and services in Mainland China. It operates through Cement, Concrete, and Aggregates and Others segments. The company engages in the excavation of limestone; and production, sale, and distribution of cement, clinker, and concrete. The company's products are used in the construction of infrastructure projects, such as railways, highways, subways, bridges, airports, ports, dams, and hydroelectric and nuclear power stations, as well as high-rise buildings, and suburban and rural area development. It also engages in the manufacture and sale of engineered and natural stones, and other products; prefabricated construction materials; mining of aggregates; marine transportation activities; provides environmental protection engineering, and warehouse management and fuel supply services; and offers building materials testing and consultancy services. In addition, the company trades in steel pipes, aggregates, and construction materials; and holds properties. The company was formerly known as China Resources Cement Holdings Limited and changed its name to China Resources Building Materials Technology Holdings Limited in November 2023. The company was founded in 1998 and is headquartered in Wan Chai, Hong Kong. China Resources Building Materials Technology Holdings Limited is a subsidiary of CRH (Cement) Limited.