Critical Contrast: Heidelberg Materials (OTCMKTS:HDELY) and Vulcan Materials (NYSE:VMC)

Heidelberg Materials (OTCMKTS:HDELY) and Vulcan Materials (NYSE:VMC) are both large-cap materials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Heidelberg Materials and Vulcan Materials, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heidelberg Materials	0	2	1	0	2.33
Vulcan Materials	0	8	8	0	2.50

Vulcan Materials has a consensus target price of $327.93, suggesting a potential upside of 15.51%. Given Vulcan Materials’ stronger consensus rating and higher possible upside, analysts clearly believe Vulcan Materials is more favorable than Heidelberg Materials.

Volatility and Risk

Heidelberg Materials has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Vulcan Materials has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.

Dividends

Heidelberg Materials pays an annual dividend of $0.42 per share and has a dividend yield of 1.7%. Vulcan Materials pays an annual dividend of $2.08 per share and has a dividend yield of 0.7%. Vulcan Materials pays out 24.6% of its earnings in the form of a dividend. Vulcan Materials has raised its dividend for 12 consecutive years.

Institutional & Insider Ownership

0.0% of Heidelberg Materials shares are owned by institutional investors. Comparatively, 90.4% of Vulcan Materials shares are owned by institutional investors. 0.7% of Vulcan Materials shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Heidelberg Materials	$22.92 billion	0.99	$2.09 billion	N/A	N/A
Vulcan Materials	$7.94 billion	4.63	$1.08 billion	$8.47	33.52

Heidelberg Materials has higher revenue and earnings than Vulcan Materials.

Profitability

This table compares Heidelberg Materials and Vulcan Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heidelberg Materials	N/A	N/A	N/A
Vulcan Materials	13.75%	13.05%	6.70%

Summary

Vulcan Materials beats Heidelberg Materials on 10 of the 15 factors compared between the two stocks.

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.

About Vulcan Materials

Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The company provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities. It also offers asphalt mix and asphalt construction paving services; ready-mixed concrete; and calcium products for the animal feed, plastics, and water treatment industries. The company was formerly known as Virginia Holdco, Inc. and changed its name to Vulcan Materials Company. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.