Reviewing Cemex (NYSE:CX) and James Hardie Industries (NYSE:JHX)

James Hardie Industries (NYSE:JHX) and Cemex (NYSE:CX) are both large-cap materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Profitability

This table compares James Hardie Industries and Cemex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
James Hardie Industries	2.69%	10.56%	4.93%
Cemex	2.83%	3.82%	1.80%

Volatility and Risk

James Hardie Industries has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500. Comparatively, Cemex has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Insider and Institutional Ownership

8.0% of James Hardie Industries shares are owned by institutional investors. Comparatively, 83.0% of Cemex shares are owned by institutional investors. 1.2% of James Hardie Industries shares are owned by insiders. Comparatively, 1.0% of Cemex shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for James Hardie Industries and Cemex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
James Hardie Industries	0	2	9	0	2.82
Cemex	0	5	7	0	2.58

James Hardie Industries currently has a consensus target price of $32.50, suggesting a potential upside of 14.18%. Cemex has a consensus target price of $13.07, suggesting a potential upside of 22.44%. Given Cemex’s higher probable upside, analysts plainly believe Cemex is more favorable than James Hardie Industries.

Earnings & Valuation

This table compares James Hardie Industries and Cemex”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
James Hardie Industries	$4.84 billion	3.42	$104.00 million	$0.25	113.86
Cemex	$16.13 billion	0.96	$960.00 million	$0.34	31.39

Cemex has higher revenue and earnings than James Hardie Industries. Cemex is trading at a lower price-to-earnings ratio than James Hardie Industries, indicating that it is currently the more affordable of the two stocks.

Summary

James Hardie Industries beats Cemex on 8 of the 14 factors compared between the two stocks.

About James Hardie Industries

James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, and the Philippines. The company operates through North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products segments. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement products for a range of applications, including external cladding, internal walls, ceilings, floors, soffits, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for use in the timber frame construction, dry lining, DIY, and structural fire protection applications. Its products are used in residential repair and remodel, and commercial and residential new construction markets James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.

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.