Head-To-Head Contrast: Arcosa (NYSE:ACA) vs. Cementos Pacasmayo S.A.A. (NYSE:CPAC)

Cementos Pacasmayo S.A.A. (NYSE:CPAC) and Arcosa (NYSE:ACA) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Valuation & Earnings

This table compares Cementos Pacasmayo S.A.A. and Arcosa”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cementos Pacasmayo S.A.A.	$593.95 million	1.82	$43.27 million	$0.72	17.75
Arcosa	$2.88 billion	2.54	$208.40 million	$9.98	14.95

Arcosa has higher revenue and earnings than Cementos Pacasmayo S.A.A.. Arcosa is trading at a lower price-to-earnings ratio than Cementos Pacasmayo S.A.A., indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

90.7% of Arcosa shares are held by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are held by insiders. Comparatively, 1.8% of Arcosa shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Cementos Pacasmayo S.A.A. pays an annual dividend of $0.56 per share and has a dividend yield of 4.4%. Arcosa pays an annual dividend of $0.20 per share and has a dividend yield of 0.1%. Cementos Pacasmayo S.A.A. pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Arcosa pays out 2.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings for Cementos Pacasmayo S.A.A. and Arcosa, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cementos Pacasmayo S.A.A.	0	3	1	0	2.25
Arcosa	0	4	3	0	2.43

Cementos Pacasmayo S.A.A. presently has a consensus target price of $12.98, suggesting a potential upside of 1.56%. Arcosa has a consensus target price of $141.25, suggesting a potential downside of 5.33%. Given Cementos Pacasmayo S.A.A.’s higher probable upside, equities research analysts clearly believe Cementos Pacasmayo S.A.A. is more favorable than Arcosa.

Volatility & Risk

Cementos Pacasmayo S.A.A. has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Arcosa has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares Cementos Pacasmayo S.A.A. and Arcosa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cementos Pacasmayo S.A.A.	11.22%	20.10%	8.31%
Arcosa	17.90%	7.90%	4.22%

Summary

Arcosa beats Cementos Pacasmayo S.A.A. on 12 of the 16 factors compared between the two stocks.

About Cementos Pacasmayo S.A.A.

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in Peru. It operates through three segments: Cement, Concrete, Mortar and Precast; Quicklime; and Sales of Construction Supplies. The company’s cement and concrete products are used in residential and commercial construction, and civil engineering; ready-mix concrete used in construction sites; concrete precast, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete precast for structural and non-structural uses; and cement-based products. It also produces and distributes quicklime for use in steel, food, fishing, and chemical industries. In addition, the company sells and distributes other construction materials manufactured by third parties, such as steel rebar, plastic pipes, and electrical wires. It offers its products directly to other retailers, private construction companies, and government entities through a network of independent retailers and hardware stores. The company was incorporated in 1949 and is headquartered in Lima, Peru. Cementos Pacasmayo S.A.A. is a subsidiary of Inversiones ASPI S.A.

About Arcosa

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, engineered structures, and transportation markets in the United States. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and construction site support equipment, including trench shields and shoring products for residential and non-residential construction, and specialty/other products, as well as for infrastructure construction. The Engineered Structures segment offers utility structures, wind towers, traffic structures, and telecommunication structures for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets. The Transportation Products segment offers inland barges, fiberglass barge covers, winches, marine hardware, and steel components for railcars and transportation equipment; cast components for industrial and mining sectors; and axles, circular forgings, and coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.