Critical Comparison: Cementos Pacasmayo S.A.A. (CPAC) & Its Peers

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

Volatility and Risk

Cementos Pacasmayo S.A.A. has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Cementos Pacasmayo S.A.A.’s peers have a beta of 0.90, suggesting that their average stock price is 10% less volatile than the S&P 500.

Dividends

Cementos Pacasmayo S.A.A. pays an annual dividend of $0.56 per share and has a dividend yield of 4.7%. Cementos Pacasmayo S.A.A. pays out 77.8% 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 174.7% 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Cementos Pacasmayo S.A.A. and its peers, as reported 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	403	2047	2825	83	2.48

Cementos Pacasmayo S.A.A. currently has a consensus target price of $13.00, suggesting a potential upside of 9.01%. As a group, “Construction Materials” companies have a potential upside of 403.28%. Given Cementos Pacasmayo S.A.A.’s peers stronger consensus rating and higher possible upside, analysts plainly 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	4.40%	8.29%	5.02%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Cementos Pacasmayo S.A.A.	$593.95 million	$43.27 million	16.56
Cementos Pacasmayo S.A.A. Competitors	$32.55 billion	$651.37 million	32.05

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.

Insider and Institutional Ownership

46.6% of shares of all “Construction Materials” companies are owned by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are owned by insiders. Comparatively, 9.9% of shares of all “Construction Materials” companies are owned by 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.

Summary

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

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.