Reviewing James Hardie Industries (NYSE:JHX) & Heidelberg Materials (OTCMKTS:HDLMY)

James Hardie Industries (NYSE:JHX) and Heidelberg Materials (OTCMKTS:HDLMY) are both large-cap materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Earnings & Valuation

This table compares James Hardie Industries and Heidelberg Materials”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
James Hardie Industries	$4.84 billion	3.65	$104.00 million	$0.25	121.52
Heidelberg Materials	$24.40 billion	1.34	$2.20 billion	N/A	N/A

Heidelberg Materials has higher revenue and earnings than James Hardie Industries.

Institutional & Insider Ownership

8.0% of James Hardie Industries shares are held by institutional investors. Comparatively, 0.0% of Heidelberg Materials shares are held by institutional investors. 1.2% of James Hardie Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for James Hardie Industries and Heidelberg Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
James Hardie Industries	0	2	9	0	2.82
Heidelberg Materials	1	1	0	2	2.75

James Hardie Industries currently has a consensus price target of $32.50, indicating a potential upside of 6.98%. Given James Hardie Industries’ stronger consensus rating and higher probable upside, analysts plainly believe James Hardie Industries is more favorable than Heidelberg Materials.

Profitability

This table compares James Hardie Industries and Heidelberg Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
James Hardie Industries	2.69%	10.56%	4.93%
Heidelberg Materials	N/A	N/A	N/A

Risk & Volatility

James Hardie Industries has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Heidelberg Materials has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Summary

James Hardie Industries beats Heidelberg Materials on 10 of the 13 factors compared between the two stocks.

About James Hardie Industries

James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, and the Philippines. The company operates through North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products segments. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement products for a range of applications, including external cladding, internal walls, ceilings, floors, soffits, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for use in the timber frame construction, dry lining, DIY, and structural fire protection applications. Its products are used in residential repair and remodel, and commercial and residential new construction markets James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.

About Heidelberg Materials

Heidelberg Materials AG, together with its subsidiaries, produces and distributes cement, aggregates, ready-mixed concrete and asphalt. It provides cement products; natural stone aggregates and ready-mixed concrete. Heidelberg Materials AG, formerly known as HeidelbergCement AG, is based in Heidelberg, Germany.