Contrasting Cementos Pacasmayo S.A.A. (CPAC) & Its Rivals

Cementos Pacasmayo S.A.A. (NYSE:CPAC) is one of 74 publicly-traded companies in the “Construction Materials” industry, but how does it compare to its peers? We will compare Cementos Pacasmayo S.A.A. to related businesses based on the strength of its earnings, valuation, dividends, institutional ownership, risk, analyst recommendations and profitability.

Insider and Institutional Ownership

46.6% of shares of all “Construction Materials” companies are held by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are held by insiders. Comparatively, 9.9% of shares of all “Construction Materials” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility & Risk

Cementos Pacasmayo S.A.A. has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Cementos Pacasmayo S.A.A.’s peers have a beta of 0.91, meaning that their average share price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Cementos Pacasmayo S.A.A. and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cementos Pacasmayo S.A.A.	0	4	0	0	2.00
Cementos Pacasmayo S.A.A. Competitors	402	2042	2820	83	2.48

Cementos Pacasmayo S.A.A. presently has a consensus target price of $13.00, suggesting a potential upside of 10.22%. As a group, “Construction Materials” companies have a potential upside of 428.12%. Given Cementos Pacasmayo S.A.A.’s peers stronger consensus rating and higher probable upside, analysts clearly believe Cementos Pacasmayo S.A.A. has less favorable growth aspects than its peers.

Profitability

This table compares Cementos Pacasmayo S.A.A. and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cementos Pacasmayo S.A.A.	9.42%	16.49%	6.74%
Cementos Pacasmayo S.A.A. Competitors	4.41%	8.31%	5.03%

Valuation & Earnings

This table compares Cementos Pacasmayo S.A.A. and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cementos Pacasmayo S.A.A.	$2.25 billion	$43.27 million	16.38
Cementos Pacasmayo S.A.A. Competitors	$6.81 billion	$651.37 million	32.55

Cementos Pacasmayo S.A.A.’s peers have higher revenue and earnings than Cementos Pacasmayo S.A.A.. Cementos Pacasmayo S.A.A. is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

Cementos Pacasmayo S.A.A. pays an annual dividend of $0.55 per share and has a dividend yield of 4.7%. Cementos Pacasmayo S.A.A. pays out 76.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Construction Materials” companies pay a dividend yield of 183.5% and pay out 31.6% of their earnings in the form of a dividend. Cementos Pacasmayo S.A.A. lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Cementos Pacasmayo S.A.A. peers beat Cementos Pacasmayo S.A.A. on 12 of the 15 factors compared.

Cementos Pacasmayo S.A.A. Company Profile

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.