China Resources Cement (OTCMKTS:CARCY) vs. Heidelberg Materials (OTCMKTS:HLBZF) Head-To-Head Contrast
by Mitch Edgeman · The Markets DailyChina Resources Cement (OTCMKTS:CARCY – Get Free Report) and Heidelberg Materials (OTCMKTS:HLBZF – Get Free Report) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.
Profitability
This table compares China Resources Cement and Heidelberg Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| China Resources Cement | -1.44% | -0.62% | -0.40% |
| Heidelberg Materials | N/A | N/A | N/A |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for China Resources Cement and Heidelberg Materials, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| China Resources Cement | 0 | 0 | 0 | 0 | 0.00 |
| Heidelberg Materials | 0 | 1 | 4 | 0 | 2.80 |
Earnings and Valuation
This table compares China Resources Cement and Heidelberg Materials”s 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 | 0.33 | $66.68 million | ($0.18) | -22.78 |
| Heidelberg Materials | N/A | N/A | N/A | $2.42 | 84.24 |
China Resources Cement has higher revenue and earnings than Heidelberg Materials. China Resources Cement is trading at a lower price-to-earnings ratio than Heidelberg Materials, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
33.9% of Heidelberg Materials shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
China Resources Cement pays an annual dividend of $0.15 per share and has a dividend yield of 3.7%. Heidelberg Materials pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. China Resources Cement pays out -83.3% of its earnings in the form of a dividend. Heidelberg Materials pays out 24.8% 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. China Resources Cement is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Heidelberg Materials beats China Resources Cement on 8 of the 11 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 Heidelberg Materials
Heidelberg Materials AG, together with its subsidiaries, produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. It provides cement products; natural stone aggregates, including sand and gravel; crushed aggregates comprising stone chippings and crushed stones; and ready-mixed concrete for use in the construction of tunnels or bridges, office buildings, or schools, as well as to produce precast concrete parts, such as stairs, ceiling elements, or structural components. The company offers asphalt; and trades in cement, clinker, secondary cementitious materials, solid, alternative fuels, other building materials, and additives. The company was formerly known as HeidelbergCement AG and changed its name to Heidelberg Materials AG in May 2023. Heidelberg Materials AG was founded in 1873 and is headquartered in Heidelberg, Germany.