Critical Contrast: Loma Negra Compania Industrial Argentina (NYSE:LOMA) versus Taylor Wimpey (OTCMKTS:TWODY)

Taylor Wimpey (OTCMKTS:TWODY) and Loma Negra Compania Industrial Argentina (NYSE:LOMA) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Institutional & Insider Ownership

19.3% of Loma Negra Compania Industrial Argentina shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Taylor Wimpey and Loma Negra Compania Industrial Argentina, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Taylor Wimpey	2	2	1	1	2.17
Loma Negra Compania Industrial Argentina	0	1	2	0	2.67

Loma Negra Compania Industrial Argentina has a consensus target price of $15.50, suggesting a potential upside of 49.20%. Given Loma Negra Compania Industrial Argentina’s stronger consensus rating and higher probable upside, analysts plainly believe Loma Negra Compania Industrial Argentina is more favorable than Taylor Wimpey.

Volatility and Risk

Taylor Wimpey has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Loma Negra Compania Industrial Argentina has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Profitability

This table compares Taylor Wimpey and Loma Negra Compania Industrial Argentina’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Taylor Wimpey	N/A	N/A	N/A
Loma Negra Compania Industrial Argentina	4.38%	3.27%	1.83%

Valuation & Earnings

This table compares Taylor Wimpey and Loma Negra Compania Industrial Argentina”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Taylor Wimpey	$4.37 billion	0.83	$433.99 million	N/A	N/A
Loma Negra Compania Industrial Argentina	$692.89 million	1.75	$18.87 million	$0.24	43.29

Taylor Wimpey has higher revenue and earnings than Loma Negra Compania Industrial Argentina.

Summary

Loma Negra Compania Industrial Argentina beats Taylor Wimpey on 8 of the 12 factors compared between the two stocks.

About Taylor Wimpey

Taylor Wimpey plc operates as a homebuilder in the United Kingdom and Spain. It builds and delivers various homes and communities. Taylor Wimpey plc was incorporated in 1935 and is based in High Wycombe, the United Kingdom.

About Loma Negra Compania Industrial Argentina

Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Railroad; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. The company also provides rail transportation services; and treats and recycles industrial waste for use as fuel and raw material. It markets its products under the Loma Negra, San Martín, Plasticor, Cacique Plus, Cacique Max, Loma Negra Plus, and Lomax brands. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima is a subsidiary of Intercement Trading E Inversiones Argentina Sociedad Limitada.