Contrasting Heidelberg Materials (OTCMKTS:HLBZF) and Cementos Pacasmayo S.A.A. (NYSE:CPAC)

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

Institutional and Insider Ownership

33.9% of Heidelberg Materials shares are held by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Cementos Pacasmayo S.A.A. pays an annual dividend of $0.56 per share and has a dividend yield of 4.7%. Heidelberg Materials pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. 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. Heidelberg Materials pays out 24.8% of its earnings in the form of a dividend.

Profitability

This table compares Cementos Pacasmayo S.A.A. and Heidelberg Materials’ 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%
Heidelberg Materials	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cementos Pacasmayo S.A.A. and Heidelberg Materials, 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
Heidelberg Materials	0	1	4	0	2.80

Cementos Pacasmayo S.A.A. presently has a consensus target price of $13.00, indicating a potential upside of 9.43%. Given Cementos Pacasmayo S.A.A.’s higher possible upside, equities analysts clearly believe Cementos Pacasmayo S.A.A. is more favorable than Heidelberg Materials.

Earnings and Valuation

This table compares Cementos Pacasmayo S.A.A. and Heidelberg 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	1.70	$43.27 million	$0.72	16.50
Heidelberg Materials	N/A	N/A	N/A	$2.42	75.92

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

Summary

Cementos Pacasmayo S.A.A. beats Heidelberg Materials on 7 of the 13 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 Heidelberg Materials

Heidelberg Materials AG, together with its subsidiaries, produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. It provides cement products; natural stone aggregates, including sand and gravel; crushed aggregates comprising stone chippings and crushed stones; and ready-mixed concrete for use in the construction of tunnels or bridges, office buildings, or schools, as well as to produce precast concrete parts, such as stairs, ceiling elements, or structural components. The company offers asphalt; and trades in cement, clinker, secondary cementitious materials, solid, alternative fuels, other building materials, and additives. The company was formerly known as HeidelbergCement AG and changed its name to Heidelberg Materials AG in May 2023. Heidelberg Materials AG was founded in 1873 and is headquartered in Heidelberg, Germany.