Contrasting James Hardie Industries (NYSE:JHX) and Cemex (NYSE:CX)

Cemex (NYSE:CX) and James Hardie Industries (NYSE:JHX) are both large-cap materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Dividends

Cemex pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. James Hardie Industries pays an annual dividend of $0.21 per share and has a dividend yield of 0.7%. Cemex pays out 35.3% of its earnings in the form of a dividend. James Hardie Industries pays out 84.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cemex is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Cemex and James Hardie Industries”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	0.99	$960.00 million	$0.34	32.31
James Hardie Industries	$5.41 billion	3.20	$104.00 million	$0.25	119.34

Cemex has higher revenue and earnings than James Hardie Industries. Cemex is trading at a lower price-to-earnings ratio than James Hardie Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and price targets for Cemex and James Hardie Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cemex	0	5	7	0	2.58
James Hardie Industries	0	2	9	0	2.82

Cemex presently has a consensus target price of $13.07, suggesting a potential upside of 18.95%. James Hardie Industries has a consensus target price of $32.50, suggesting a potential upside of 8.93%. Given Cemex’s higher possible upside, equities research analysts clearly believe Cemex is more favorable than James Hardie Industries.

Insider and Institutional Ownership

83.0% of Cemex shares are owned by institutional investors. Comparatively, 8.0% of James Hardie Industries shares are owned by institutional investors. 1.0% of Cemex shares are owned by company insiders. Comparatively, 1.2% of James Hardie Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Cemex and James Hardie Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cemex	2.83%	3.82%	1.80%
James Hardie Industries	2.69%	10.56%	4.93%

Volatility & Risk

Cemex has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, James Hardie Industries has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500.

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 James Hardie Industries

James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, and the Philippines. The company operates through North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products segments. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement products for a range of applications, including external cladding, internal walls, ceilings, floors, soffits, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for use in the timber frame construction, dry lining, DIY, and structural fire protection applications. Its products are used in residential repair and remodel, and commercial and residential new construction markets James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.