Analyzing Eagle Materials (EXP) & Its Rivals

Eagle Materials (NYSE:EXP) is one of 74 public companies in the “Construction Materials” industry, but how does it compare to its rivals? We will compare Eagle Materials to similar businesses based on the strength of its risk, analyst recommendations, valuation, earnings, dividends, institutional ownership and profitability.

Insider & Institutional Ownership

96.1% of Eagle Materials shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Construction Materials” companies are owned by institutional investors. 1.7% of Eagle Materials shares are owned by company insiders. Comparatively, 10.0% of shares of all “Construction Materials” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Eagle Materials has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Eagle Materials’ rivals have a beta of 0.93, suggesting that their average stock price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares Eagle Materials and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Eagle Materials	$2.31 billion	$423.81 million	15.83
Eagle Materials Competitors	$6.82 billion	$651.37 million	26.80

Eagle Materials’ rivals have higher revenue and earnings than Eagle Materials. Eagle Materials 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.

Dividends

Eagle Materials pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. Eagle Materials pays out 7.9% of its earnings in the form of a dividend. As a group, “Construction Materials” companies pay a dividend yield of 180.2% and pay out 31.6% of their earnings in the form of a dividend.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eagle Materials	17.32%	26.87%	10.73%
Eagle Materials Competitors	4.55%	7.96%	4.97%

Analyst Ratings

This is a summary of recent ratings and target prices for Eagle Materials and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Materials	0	9	1	0	2.10
Eagle Materials Competitors	407	2067	2844	86	2.48

Eagle Materials presently has a consensus target price of $223.67, suggesting a potential upside of 11.66%. As a group, “Construction Materials” companies have a potential upside of 448.22%. Given Eagle Materials’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Eagle Materials has less favorable growth aspects than its rivals.

Summary

Eagle Materials rivals beat Eagle Materials on 9 of the 15 factors compared.

About Eagle Materials

Eagle Materials Inc., through its subsidiaries, manufactures and sells heavy construction materials and light building materials in the United States. It operates in four segments: Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement, including Portland limestone cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures, as well as well as containerboard and lightweight packaging grades; manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters; the sale of readymix concrete; and mining and sale of aggregates, such as crushed stone, sand, and gravel. Its products are used in commercial and residential construction; public construction projects to build, expand, and repair roads and highways; and repair and remodel activities. The company was formerly known as Centex Construction Products, Inc. and changed its name to Eagle Materials, Inc. in January 2004. Eagle Materials Inc. was founded in 1963 and is headquartered in Dallas, Texas.