Head to Head Analysis: CRH (NYSE:CRH) and China Resources Cement (OTCMKTS:CARCY)

China Resources Cement (OTCMKTS:CARCY) and CRH (NYSE:CRH) are both materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Risk & Volatility

China Resources Cement has a beta of -0.03, suggesting that its stock price is 103% less volatile than the S&P 500. Comparatively, CRH has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Resources Cement	$2.93 billion	0.36	$66.68 million	$0.10	45.06
CRH	$37.45 billion	1.70	$3.73 billion	$5.40	17.60

CRH has higher revenue and earnings than China Resources Cement. CRH is trading at a lower price-to-earnings ratio than China Resources Cement, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
China Resources Cement	0.86%	0.39%	0.25%
CRH	9.93%	15.76%	6.64%

Dividends

China Resources Cement pays an annual dividend of $0.15 per share and has a dividend yield of 3.3%. CRH pays an annual dividend of $1.56 per share and has a dividend yield of 1.6%. China Resources Cement pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CRH pays out 28.9% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for China Resources Cement and CRH, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Resources Cement	0	0	0	0	0.00
CRH	0	1	15	1	3.00

CRH has a consensus target price of $139.44, indicating a potential upside of 46.73%. Given CRH’s stronger consensus rating and higher probable upside, analysts clearly believe CRH is more favorable than China Resources Cement.

Insider & Institutional Ownership

62.5% of CRH shares are owned by institutional investors. 0.1% of CRH 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.

Summary

CRH beats China Resources Cement on 15 of the 17 factors compared between the two stocks.

About China Resources Cement

China Resources Building Materials Technology Holdings Limited, an investment holding company, manufactures and sells cement, concrete, aggregates, and related products and services in Mainland China. It operates through Cement, Concrete, and Aggregates and Others segments. The company engages in the excavation of limestone; and production, sale, and distribution of cement, clinker, and concrete. The company's products are used in the construction of infrastructure projects, such as railways, highways, subways, bridges, airports, ports, dams, and hydroelectric and nuclear power stations, as well as high-rise buildings, and suburban and rural area development. It also engages in the manufacture and sale of engineered and natural stones, and other products; prefabricated construction materials; mining of aggregates; marine transportation activities; provides environmental protection engineering, and warehouse management and fuel supply services; and offers building materials testing and consultancy services. In addition, the company trades in steel pipes, aggregates, and construction materials; and holds properties. The company was formerly known as China Resources Cement Holdings Limited and changed its name to China Resources Building Materials Technology Holdings Limited in November 2023. The company was founded in 1998 and is headquartered in Wan Chai, Hong Kong. China Resources Building Materials Technology Holdings Limited is a subsidiary of CRH (Cement) Limited.

About CRH

CRH plc, together with its subsidiaries, provides building materials solutions in Ireland and internationally. It operates through four segments: Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions, and Europe Building Solutions. The company provides solutions for the construction and maintenance of public infrastructure and commercial and residential buildings; and produces and sells aggregates, cement, readymixed concrete, and asphalt, as well as provides paving and construction services. It also manufactures, supplies, and delivers solutions for the built environment in communities across North America; and offers building and infrastructure solutions serving complex critical utility infrastructure, such as water, energy, transportation, and telecommunications projects, and outdoor living solutions for enhancing private and public spaces. In addition, the company combines materials, products, and services to produce a wide range of architectural and infrastructural solutions for use in the building and renovation of critical utility infrastructure, commercial and residential buildings, and outdoor living spaces for the built environment. Further, it produces and supplies precast and pre-stressed concrete products comprising floor and wall elements, beams, vaults, pipes, and manholes; granite, limestone, and sandstone; concrete and polymer-based products, such as underground vaults, drainage systems, utility enclosures, and modular precast structures; engineered steel, polymer-based anchoring, fixing, and connecting solutions; concrete masonry, hardscape and related products, including pavers, blocks and curbs, retaining walls, and slabs; and fencing and railing systems, composite decking, lawn and garden products, and packaged concrete mixes. The company was founded in 1936 and is headquartered in Dublin, Ireland.