Financial Analysis: Cementos Argos (OTCMKTS:CMTOY) vs. Cemex (NYSE:CX)

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

Profitability

This table compares Cemex and Cementos Argos’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cemex	2.83%	3.82%	1.80%
Cementos Argos	N/A	N/A	N/A

Institutional and Insider Ownership

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, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Cemex pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Cementos Argos pays an annual dividend of $0.56 per share and has a dividend yield of 3.1%. Cemex pays out 35.3% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Cemex and Cementos Argos”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cemex	$16.13 billion	1.02	$960.00 million	$0.34	33.32
Cementos Argos	N/A	N/A	N/A	N/A	N/A

Cemex has higher revenue and earnings than Cementos Argos.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Cemex and Cementos Argos, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cemex	0	5	7	0	2.58
Cementos Argos	0	0	0	0	0.00

Cemex presently has a consensus target price of $13.07, suggesting a potential upside of 15.33%. Given Cemex’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Cemex is more favorable than Cementos Argos.

Risk and Volatility

Cemex has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Cementos Argos has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Summary

Cemex beats Cementos Argos on 10 of the 12 factors compared between the two stocks.

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.

About Cementos Argos

Cementos Argos S.A. offers cement, concrete, aggregates, ready-mix concrete, and hydrated lime products in Colombia, the Caribbean, Central America, and the United States. The company also engages in the reinsurance; property management; transport; and seaports operation businesses. In addition, it exports its products. The company was founded in 1934 and is headquartered in Barranquilla, Colombia. Cementos Argos S.A. is a subsidiary of Grupo Argos S.A.