Contrasting Holcim (OTCMKTS:HCMLY) & Caesarstone (NASDAQ:CSTE)

Caesarstone (NASDAQ:CSTE) and Holcim (OTCMKTS:HCMLY) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Valuation and Earnings

This table compares Caesarstone and Holcim”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Caesarstone	$397.23 million	0.09	-$137.47 million	($3.98)	-0.26
Holcim	$18.97 billion	2.41	$15.90 billion	N/A	N/A

Holcim has higher revenue and earnings than Caesarstone.

Profitability

This table compares Caesarstone and Holcim’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Caesarstone	-34.60%	-24.33%	-10.79%
Holcim	N/A	N/A	N/A

Institutional & Insider Ownership

33.7% of Caesarstone shares are held by institutional investors. Comparatively, 0.0% of Holcim shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Caesarstone and Holcim, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Caesarstone	1	0	0	0	1.00
Holcim	1	5	4	3	2.69

Holcim has a consensus target price of $16.80, suggesting a potential upside of 4.09%. Given Holcim’s stronger consensus rating and higher possible upside, analysts clearly believe Holcim is more favorable than Caesarstone.

Volatility and Risk

Caesarstone has a beta of -0.03, indicating that its share price is 103% less volatile than the S&P 500. Comparatively, Holcim has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Summary

Holcim beats Caesarstone on 11 of the 12 factors compared between the two stocks.

About Caesarstone

Caesarstone Ltd., together with its subsidiaries, designs, develops, manufactures, and markets engineered stone and other materials under the Caesarstone brand in the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East and Africa, and Israel. The company’s engineered stone slabs are primarily used as indoor and outdoor kitchen countertops in the renovation and remodeling, and residential construction sectors. Its products are also used in other applications, such as vanity tops, wall panels, back splashes, floor tiles, stairs, furniture, and other interior and exterior surfaces that are used in various residential and non-residential applications. The company also offers porcelain products under the Lioli brand for countertops, flooring, and cladding applications; sells natural stone, sinks, and various ancillary fabrication tools and materials; and resells natural stones, as well as various ancillaries, and fabrication and installation accessories, as well as provides fabrication and installation services. It sells its products directly to wholesalers, resellers, and fabricators; and through direct sales force and indirect network of independent distributors. The company was formerly known as Caesarstone Sdot Yam Ltd. and changed its name to Caesarstone Ltd. in June 2016. Caesarstone Ltd. was founded in 1987 and is headquartered in Menashe, Israel.

About Holcim

Holcim AG, together with its subsidiaries, operates as a building materials and solutions company worldwide. It operates through North America; Latin America; Europe; Asia, Middle East & Africa; and Solutions & Products segments. The company offers cement, clinker, and other cementitious materials; ready-mix concrete; aggregates, such as crushed stone, gravel, and sand; and precast, concrete products, asphalts, mortars, roofing systems, insulation tile adhesives, facade solutions, and contracting and services. It also engages in distribution and retail activities comprising product availability and deliveries, in-store animation and shopping experience, one-stop retail shop, digital services and solutions, and financing and cash-flow solutions; and waste management services. The company's products are used in infrastructure projects, such as tunnels, railways and train stations, airports and ports, and bridges; housing projects, including individual and collective housing; commercial projects comprising offices, retail, and public buildings; and industrial projects consisting of renewable energy, oil and gas, and mining. It sells under the ECOPact, ECOPlanet, ECOCycle, Airium, DYNAMax, Aggneo, Ductal, Hydromedia, TectorPrint, Aggregate Industries, Disensa, Duro-Last, Elevate, Geocycle, Holcim, Lafarge, Malarkey Roofing Products, and PRB Group brands. The company was formerly known as LafargeHolcim Ltd and changed its name to Holcim AG in May 2021. The company was founded in 1833 and is headquartered in Zug, Switzerland.