Eagle Materials (NYSE:EXP) & Imerys (OTCMKTS:IMYSF) Critical Comparison

Imerys (OTCMKTS:IMYSF) and Eagle Materials (NYSE:EXP) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Profitability

This table compares Imerys and Eagle Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Imerys	N/A	N/A	N/A
Eagle Materials	17.32%	26.87%	10.73%

Earnings and Valuation

This table compares Imerys and Eagle Materials”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Imerys	N/A	N/A	N/A	C$3.23	8.46
Eagle Materials	$2.31 billion	2.63	$423.81 million	$12.65	15.64

Eagle Materials has higher revenue and earnings than Imerys. Imerys is trading at a lower price-to-earnings ratio than Eagle Materials, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

15.8% of Imerys shares are owned by institutional investors. Comparatively, 96.1% of Eagle Materials shares are owned by institutional investors. 1.7% of Eagle Materials shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Imerys pays an annual dividend of C$1.60 per share and has a dividend yield of 5.9%. Eagle Materials pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. Imerys pays out 49.5% of its earnings in the form of a dividend. Eagle Materials pays out 7.9% 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.

Analyst Ratings

This is a breakdown of current ratings for Imerys and Eagle Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Imerys	0	0	0	0	0.00
Eagle Materials	0	9	1	0	2.10

Eagle Materials has a consensus price target of $223.67, suggesting a potential upside of 13.03%. Given Eagle Materials’ stronger consensus rating and higher possible upside, analysts plainly believe Eagle Materials is more favorable than Imerys.

Summary

Eagle Materials beats Imerys on 12 of the 13 factors compared between the two stocks.

About Imerys

Imerys S.A. provides mineral-based specialty solutions for various industries worldwide. The company provides additives for paints, coatings, adhesives, caulks, sealants, and rubber; minerals for technical ceramics and traditional ceramics; functional additives for plastics and thermoset; high-performance binders for dry mix mortars and floor screeds; fillers and coatings for paper, board, and packaging applications; filtration agents for liquids and blood plasma; pharmaceutical diluents, coloring agents, processing aids, glidants, and lubricants for tablet production; engineered minerals for cosmetic industry; food additives to preserve flavor; coating agents to improve fertilizer fow; mineral-based cat litters; alumina for high-performance abrasives and graphite in brake pads; and carbon black for conductivity in onboard data systems. The company also offers minerals used to produce high purity silicon metal for electronics and solar panels; graphite and carbon-based solutions for industrial applications; mineral solutions for batteries and energy storage; refractory minerals and solutions for high-temperature processes; and alumina and zirconia for abrasives. It serves construction and infrastructure, consumer and health care, automotive and transportation, energy and electronics, and industry and equipment industries. The company was incorporated in 1880 and is headquartered in Paris, France. The company is a subsidiary of Belgian Securities BV.

About Eagle Materials

Eagle Materials Inc., through its subsidiaries, manufactures and sells heavy construction materials and light building materials in the United States. It operates in four segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement, including Portland limestone cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures, as well as well as containerboard and lightweight packaging grades; manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and mining and sale of aggregates, such as crushed stone, sand, and gravel. Its products are used in commercial and residential construction; public construction projects to build, expand, and repair roads and highways; and repair and remodel activities. The company was formerly known as Centex Construction Products, Inc. and changed its name to Eagle Materials, Inc. in January 2004. Eagle Materials Inc. was founded in 1963 and is headquartered in Dallas, Texas.