Critical Comparison: Buzzi Unicem (OTCMKTS:BZZUF) & Cemex SAB de CV (OTCMKTS:CX)

Cemex SAB de CV (NYSE:CX) and Buzzi Unicem (OTCMKTS:BZZUF) are both mid-cap construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Profitability

This table compares Cemex SAB de CV and Buzzi Unicem’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cemex SAB de CV 2.51% 1.78% 0.69%
Buzzi Unicem N/A N/A N/A

Analyst Recommendations

This is a summary of current recommendations for Cemex SAB de CV and Buzzi Unicem, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cemex SAB de CV 0 5 1 0 2.17
Buzzi Unicem 0 0 0 0 N/A

Cemex SAB de CV presently has a consensus price target of $6.00, indicating a potential upside of 56.66%. Given Cemex SAB de CV’s higher probable upside, equities research analysts clearly believe Cemex SAB de CV is more favorable than Buzzi Unicem.

Dividends

Cemex SAB de CV pays an annual dividend of $0.05 per share and has a dividend yield of 1.3%. Buzzi Unicem does not pay a dividend. Cemex SAB de CV pays out 14.3% of its earnings in the form of a dividend.

Volatility and Risk

Cemex SAB de CV has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Buzzi Unicem has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500.

Institutional and Insider Ownership

30.3% of Cemex SAB de CV shares are held by institutional investors. 1.0% of Cemex SAB de CV shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Cemex SAB de CV and Buzzi Unicem’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cemex SAB de CV $14.37 billion 0.40 $545.33 million $0.35 10.94
Buzzi Unicem N/A N/A N/A N/A N/A

Cemex SAB de CV has higher revenue and earnings than Buzzi Unicem.

Summary

Cemex SAB de CV beats Buzzi Unicem on 10 of the 11 factors compared between the two stocks.

Cemex SAB de CV Company Profile

CEMEX, S.A.B. de C.V., together with its subsidiaries, produces, markets, distributes, and sells cement, ready-mix concrete, aggregates, clinker, and other construction materials. The company also offers various complementary construction products, including asphalt products; concrete blocks and roof tiles; architectural products; concrete pipes for storm and sanitary sewers applications; and other precast products comprising rail products, concrete floors, box culverts, bridges, drainage basins, barriers, and parking curbs. In addition, it provides building solutions for housing projects, pavement projects, and green building consultancy services; and information technology solutions. The company has operations in Mexico; the United States; Europe; South and Central America, and the Caribbean; Asia, the Middle East, and Africa; and internationally. CEMEX, S.A.B. de C.V. was founded in 1906 and is headquartered in San Pedro Garza García, Mexico.

Buzzi Unicem Company Profile

Buzzi Unicem SpA, together with its subsidiaries, manufactures, distributes, and sells cement, ready-mix concrete, and aggregates. The company has operations in Italy, the United States, Germany, Luxembourg, the Netherlands, Poland, the Czech Republic, Slovakia, Ukraine, Russia, Mexico, and Brazil. Buzzi Unicem SpA was founded in 1907 and is based in Casale Monferrato, Italy.

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