Summit Materials (NYSE:SUM – Get Free Report) and Imerys (OTCMKTS:IMYSF – Get Free Report) are both construction companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.
Valuation and Earnings
This table compares Summit Materials and Imerys’ revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Summit Materials | $2.62 billion | 2.61 | $289.63 million | $2.38 | 16.49 |
Imerys | N/A | N/A | N/A | C$3.23 | 9.61 |
Summit Materials has higher revenue and earnings than Imerys. Imerys is trading at a lower price-to-earnings ratio than Summit Materials, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Summit Materials | 0 | 5 | 7 | 0 | 2.58 |
Imerys | 0 | 0 | 0 | 0 | N/A |
Summit Materials presently has a consensus target price of $46.09, suggesting a potential upside of 17.46%. Given Summit Materials’ higher probable upside, research analysts plainly believe Summit Materials is more favorable than Imerys.
Profitability
This table compares Summit Materials and Imerys’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Summit Materials | 10.91% | 8.73% | 4.18% |
Imerys | N/A | N/A | N/A |
Institutional and Insider Ownership
15.8% of Imerys shares are held by institutional investors. 0.6% of Summit Materials shares are held 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.
Summary
Summit Materials beats Imerys on 8 of the 10 factors compared between the two stocks.
About Summit Materials
Summit Materials, Inc. operates as a vertically integrated construction materials company in the United States and Canada. It operates in three segments: West, East, and Cement. The company offers aggregates, cement, ready-mix concrete, asphalt paving mixes, and concrete products, as well as plastics components. It also provides asphalt paving and related services. In addition, the company operates municipal waste, construction, and demolition debris landfills; and liquid asphalt terminals. The company serves the public infrastructure, and residential and nonresidential end markets. Summit Materials, Inc. was founded in 2009 and is headquartered in Denver, Colorado.
About Imerys
Imerys S.A. provides mineral-based specialty solutions for various industries worldwide. The company provides additives for paints, coatings, adhesives, caulks, sealants, and rubber; minerals for technical ceramics and traditional ceramics; functional additives for plastics and thermoset; high-performance binders for dry mix mortars and floor screeds; fillers and coatings for paper, board, and packaging applications; filtration agents for liquids and blood plasma; pharmaceutical diluents, coloring agents, processing aids, glidants, and lubricants for tablet production; engineered minerals for cosmetic industry; food additives to preserve flavor; coating agents to improve fertilizer fow; mineral-based cat litters; alumina for high-performance abrasives and graphite in brake pads; and carbon black for conductivity in onboard data systems. The company also offers minerals used to produce high purity silicon metal for electronics and solar panels; graphite and carbon-based solutions for industrial applications; mineral solutions for batteries and energy storage; refractory minerals and solutions for high-temperature processes; and alumina and zirconia for abrasives. It serves construction and infrastructure, consumer and health care, automotive and transportation, energy and electronics, and industry and equipment industries. The company was incorporated in 1880 and is headquartered in Paris, France. The company is a subsidiary of Belgian Securities BV.
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