Financial Analysis: GCC (OTCMKTS:GCWOF) versus Anhui Conch Cement (OTCMKTS:AHCHY)

GCC (OTCMKTS:GCWOF) and Anhui Conch Cement (OTCMKTS:AHCHY) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for GCC and Anhui Conch Cement, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GCC	0	0	1	0	3.00
Anhui Conch Cement	0	0	0	0	0.00

Institutional and Insider Ownership

4.4% of GCC shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares GCC and Anhui Conch Cement”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GCC	N/A	N/A	N/A	$1.90	6.15
Anhui Conch Cement	$11.48 billion	1.02	$1.18 billion	$1.08	10.25

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

Profitability

This table compares GCC and Anhui Conch Cement’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GCC	N/A	N/A	N/A
Anhui Conch Cement	9.72%	3.86%	3.09%

Dividends

GCC pays an annual dividend of $0.17 per share and has a dividend yield of 1.4%. Anhui Conch Cement pays an annual dividend of $0.66 per share and has a dividend yield of 6.0%. GCC pays out 8.9% of its earnings in the form of a dividend. Anhui Conch Cement pays out 61.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Anhui Conch Cement beats GCC on 6 of the 11 factors compared between the two stocks.

About GCC

GCC, S.A.B. de C.V., through its subsidiaries, produces, distributes, and sells gray Portland cement, ready-mix concrete, aggregates, and other building construction materials in Mexico and the United States. It offers cement; ready mix concrete, energy; building materials; and asphalt. The company also provides special products comprising Komponent, a shrinkage-compensating, expanding concrete additive; Metaforce, a reactive and consistent pozzolan that is used as an alternative for fly ash; Microsilex to be used in bridge decks and paving; Rapid Set, a solution for concrete applications; and Versabind, a cementitious that is used as filler in asphalt mixes as a replacement for lime. It distributes its products through distribution centers and independent wholesale distributors. The company was formerly known as Grupo Cementos de Chihuahua, S.A.B. de C.V. and changed its name to GCC, S.A.B. de C.V. in March 2021. The company was founded in 1941 and is based in Chihuahua, Mexico. GCC, S.A.B. de C.V. is a subsidiary of CAMCEM, S.A. de C.V.

About Anhui Conch Cement

Anhui Conch Cement Company Limited, together with its subsidiaries, manufactures, sells, and trades in clinker and cement products. The company operates through five segments: Eastern China, Central China, Southern China, Western China, and Overseas. It provides construction and installation services for industrial purposes; logistic services; and mining and related services. The company manufactures and sells cement packaging products, concrete products, and refractory materials; and develops and sells profile and related products, as well as exports clinker and cement products. In addition, it engages in investment and trading, and selling aggregates. Anhui Conch Cement Company Limited was founded in 1997 and is based in Wuhu, the People's Republic of China.