Analyzing Cemex (NYSE:CX) and Cementos Argos (OTCMKTS:CMTOY)

Cementos Argos (OTCMKTS:CMTOY) and Cemex (NYSE:CX) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Dividends

Cementos Argos pays an annual dividend of $0.56 per share and has a dividend yield of 3.1%. Cemex pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Cemex pays out 35.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Cementos Argos and Cemex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cementos Argos	0	0	0	0	0.00
Cemex	0	5	7	0	2.58

Cemex has a consensus target price of $13.07, indicating a potential upside of 15.33%. Given Cemex’s stronger consensus rating and higher possible upside, analysts clearly believe Cemex is more favorable than Cementos Argos.

Volatility and Risk

Cementos Argos has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Cemex has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Profitability

This table compares Cementos Argos and Cemex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cementos Argos	N/A	N/A	N/A
Cemex	2.83%	3.82%	1.80%

Insider and Institutional Ownership

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

Earnings and Valuation

This table compares Cementos Argos and Cemex”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cementos Argos	N/A	N/A	N/A	N/A	N/A
Cemex	$16.13 billion	1.02	$960.00 million	$0.34	33.32

Cemex has higher revenue and earnings than Cementos Argos.

Summary

Cemex beats Cementos Argos on 10 of the 12 factors compared between the two stocks.

About Cementos Argos

Cementos Argos S.A. offers cement, concrete, aggregates, ready-mix concrete, and hydrated lime products in Colombia, the Caribbean, Central America, and the United States. The company also engages in the reinsurance; property management; transport; and seaports operation businesses. In addition, it exports its products. The company was founded in 1934 and is headquartered in Barranquilla, Colombia. Cementos Argos S.A. is a subsidiary of Grupo Argos S.A.

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.