HeidelbergCement (HDELY) versus Its Peers Critical Review

HeidelbergCement (OTCMKTS: HDELY) is one of 8 publicly-traded companies in the “Cement, hydraulic” industry, but how does it compare to its rivals? We will compare HeidelbergCement to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, risk, earnings and profitability.

Dividends

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HeidelbergCement pays an annual dividend of $0.23 per share and has a dividend yield of 1.2%. HeidelbergCement pays out 19.8% of its earnings in the form of a dividend. As a group, “Cement, hydraulic” companies pay a dividend yield of 1.3% and pay out 30.5% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares HeidelbergCement and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
HeidelbergCement $16.51 billion $781.48 million 16.93
HeidelbergCement Competitors $9.65 billion $678.88 million 23.31

HeidelbergCement has higher revenue and earnings than its rivals. HeidelbergCement is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

HeidelbergCement has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, HeidelbergCement’s rivals have a beta of 1.25, suggesting that their average share price is 25% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for HeidelbergCement and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HeidelbergCement 0 3 5 0 2.63
HeidelbergCement Competitors 51 224 171 11 2.31

As a group, “Cement, hydraulic” companies have a potential upside of 21.24%. Given HeidelbergCement’s rivals higher possible upside, analysts plainly believe HeidelbergCement has less favorable growth aspects than its rivals.

Profitability

This table compares HeidelbergCement and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HeidelbergCement 5.31% 6.97% 3.27%
HeidelbergCement Competitors 9.37% 9.15% 4.71%

Insider & Institutional Ownership

0.1% of HeidelbergCement shares are held by institutional investors. Comparatively, 45.9% of shares of all “Cement, hydraulic” companies are held by institutional investors. 1.8% of shares of all “Cement, hydraulic” companies are held by company insiders. 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.

Summary

HeidelbergCement rivals beat HeidelbergCement on 10 of the 15 factors compared.

About HeidelbergCement

HeidelbergCement AG produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. Its cement products include special cements with targeted characteristics, special geotechnical building materials, and a range of binders. The company offers natural stone and crushed aggregates, including sand, gravel, stone chippings, and crushed stones; concrete/ready-mixed concrete that is used for the production of precast concrete parts, such as stairs, ceiling elements, or structural components, as well as for use in the construction of tunnels or bridges, office buildings, and schools; and asphalt, which is primarily used in the building of traffic infrastructure comprising roads, walkways, and parking lots. It also trades in cement, clinker, solid fuels, and other building materials; and purchases and delivers coal and petroleum coke through sea routes to other cement companies. The company was founded in 1873 and is headquartered in Heidelberg, Germany.

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