Cementos Pacasmayo S.A.A. (NYSE:CPAC) versus Martin Marietta Materials (NYSE:MLM) Critical Comparison

Cementos Pacasmayo S.A.A. (NYSE:CPAC) and Martin Marietta Materials (NYSE:MLM) are both materials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Dividends

Cementos Pacasmayo S.A.A. pays an annual dividend of $0.56 per share and has a dividend yield of 4.4%. Martin Marietta Materials pays an annual dividend of $3.36 per share and has a dividend yield of 0.6%. Cementos Pacasmayo S.A.A. pays out 62.9% of its earnings in the form of a dividend. Martin Marietta Materials pays out 8.9% 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 raised its dividend for 9 consecutive years.

Earnings and Valuation

This table compares Cementos Pacasmayo S.A.A. and Martin Marietta Materials”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cementos Pacasmayo S.A.A.	$593.95 million	1.82	$43.27 million	$0.89	14.32
Martin Marietta Materials	$6.15 billion	5.05	$1.14 billion	$37.79	13.69

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Cementos Pacasmayo S.A.A. and Martin Marietta Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cementos Pacasmayo S.A.A.	0	3	1	0	2.25
Martin Marietta Materials	2	7	15	0	2.54

Cementos Pacasmayo S.A.A. presently has a consensus price target of $12.98, indicating a potential upside of 1.88%. Martin Marietta Materials has a consensus price target of $642.60, indicating a potential upside of 24.21%. Given Martin Marietta Materials’ stronger consensus rating and higher possible upside, analysts clearly believe Martin Marietta Materials is more favorable than Cementos Pacasmayo S.A.A..

Institutional and Insider Ownership

95.0% of Martin Marietta Materials shares are held by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are held by company insiders. Comparatively, 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 stock will outperform the market over the long term.

Profitability

This table compares Cementos Pacasmayo S.A.A. and Martin Marietta Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cementos Pacasmayo S.A.A.	11.22%	20.10%	8.31%
Martin Marietta Materials	36.73%	9.49%	5.11%

Volatility & Risk

Cementos Pacasmayo S.A.A. has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Martin Marietta Materials has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Summary

Martin Marietta Materials beats Cementos Pacasmayo S.A.A. on 13 of the 17 factors compared between the two stocks.

About Cementos Pacasmayo S.A.A.

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.

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.