Cemex S.A.B. de C.V. (NYSE: CX) and USG Corporation (NYSE:USG) are both mid-cap construction companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Earnings and Valuation
This table compares Cemex S.A.B. de C.V. and USG Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Cemex S.A.B. de C.V.||$13.40 billion||0.85||$752.16 million||$0.76||10.21|
|USG Corporation||$3.02 billion||1.61||$510.00 million||$3.14||10.90|
Cemex S.A.B. de C.V. has higher revenue and earnings than USG Corporation. Cemex S.A.B. de C.V. is trading at a lower price-to-earnings ratio than USG Corporation, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and recommmendations for Cemex S.A.B. de C.V. and USG Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cemex S.A.B. de C.V.||0||3||4||1||2.75|
Cemex S.A.B. de C.V. presently has a consensus price target of $10.46, indicating a potential upside of 33.96%. USG Corporation has a consensus price target of $32.00, indicating a potential downside of 6.54%. Given Cemex S.A.B. de C.V.’s stronger consensus rating and higher possible upside, research analysts clearly believe Cemex S.A.B. de C.V. is more favorable than USG Corporation.
Risk & Volatility
Cemex S.A.B. de C.V. has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, USG Corporation has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
This table compares Cemex S.A.B. de C.V. and USG Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cemex S.A.B. de C.V.||8.38%||8.71%||3.10%|
Institutional and Insider Ownership
42.0% of Cemex S.A.B. de C.V. shares are owned by institutional investors. Comparatively, 86.2% of USG Corporation shares are owned by institutional investors. 1.0% of Cemex S.A.B. de C.V. shares are owned by insiders. Comparatively, 0.7% of USG Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Cemex S.A.B. de C.V. beats USG Corporation on 8 of the 15 factors compared between the two stocks.
About Cemex S.A.B. de C.V.
CEMEX, S.A.B. de C.V. (CEMEX) is an operating and holding company engaged, directly or indirectly, through its operating subsidiaries, primarily in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates, clinker and other construction materials throughout the world, and that provides construction-related services to customers and communities in over 50 countries throughout the world. The Company operates in various locations, including Mexico, the United States, Europe, South America, Central America, the Caribbean, Asia, the Middle East and Africa. Its cement production facilities are located in Mexico, the United States, Spain, Egypt, Germany, Colombia, the Philippines, Poland, the Dominican Republic, the United Kingdom, Panama, Latvia, Puerto Rico, Thailand, Costa Rica and Nicaragua. The Company is a supplier of aggregates, primarily the crushed stone, sand and gravel, used in various forms of construction.
About USG Corporation
USG Corporation, through its subsidiaries, is a manufacturer and distributor of building materials. The Company’s segments include Gypsum, Ceilings and USG Boral Building Products (UBBP). It produces a range of products for use in new residential, new nonresidential, and residential and nonresidential repair and remodel construction, as well as products used in certain industrial processes. Its products are distributed through building materials dealers, home improvement centers and other retailers, specialty wallboard distributors, and contractors. Gypsum segment manufactures and markets gypsum and related products in the United States, Canada, Mexico and Latin America. Ceilings segment manufactures and markets interior systems products in the United States, Canada, Mexico and Latin America. The UBBP segment manufactures, distributes and sells certain building products, mines raw gypsum and sells natural and synthetic gypsum throughout Asia, Australasia and the Middle East.
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