Critical Contrast: Cemex (NYSE:CX) versus West China Cement (OTCMKTS:WCHNF)

West China Cement (OTCMKTS:WCHNF) and Cemex (NYSE:CX) are both materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Profitability

This table compares West China Cement and Cemex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West China Cement	N/A	N/A	N/A
Cemex	2.83%	3.82%	1.80%

Institutional & Insider Ownership

19.6% of West China Cement shares are owned by institutional investors. Comparatively, 83.0% of Cemex shares are owned by institutional investors. 1.0% of Cemex shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for West China Cement and Cemex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West China Cement	1	0	0	0	1.00
Cemex	0	5	7	0	2.58

Cemex has a consensus price target of $13.07, indicating a potential upside of 17.45%. Given Cemex’s stronger consensus rating and higher possible upside, analysts plainly believe Cemex is more favorable than West China Cement.

Valuation & Earnings

This table compares West China Cement and Cemex”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West China Cement	N/A	N/A	N/A	N/A	N/A
Cemex	$16.13 billion	1.00	$960.00 million	$0.34	32.72

Cemex has higher revenue and earnings than West China Cement.

Summary

Cemex beats West China Cement on 9 of the 9 factors compared between the two stocks.

About West China Cement

West China Cement Limited, an investment holding company, manufactures and sells cement and cement products in the People's Republic of China. It sells cement under the Yao Bai and Yaobaishuini names. The company's products are used in the construction of infrastructure projects, such as highways, railways, bridges, hydroelectric power stations, and water conservancy and water transfer projects, as well as housing and social infrastructure projects. It also engages in financial leasing and transportation businesses. The company is headquartered in Xi'an, the People's Republic of China.

About Cemex

CEMEX, S.A.B. de C.V., together with its subsidiaries, produces, markets, distributes, and sells cement, ready-mix concrete, aggregates, urbanization solutions, and other construction materials and services worldwide. The company offers gray ordinary portland, white portland, oil-well, and blended cement products; mortar; and standard ready-mix, architectural and decorative, rapid-setting, fiber-reinforced, fluid-fill, roller-compacted, self-consolidating, pervious, and antibacterial, and other concrete products. It also provides crushed stone, sand, gravel, and recycled concrete products; performance materials, such as admixtures, mortars, special mortars, and asphalt; and waste management services comprising municipal and industrial, construction, demolition and excavation, and alternative raw materials. In addition, the company construction related services, including logistics and transportation, retail, pavement services, design and engineering, and others; and industrial construction products consist of precast components, 2D panels, 3D modules, and complete structures. CEMEX, S.A.B. de C.V. was founded in 1906 and is headquartered in San Pedro Garza García, Mexico.