Reviewing CRH (CRH) & Texas Industries (TXI)

CRH (NYSE: CRH) and Texas Industries (NYSE:TXI) are both construction companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Profitability

This table compares CRH and Texas Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CRH N/A N/A N/A
Texas Industries N/A N/A N/A

Valuation & Earnings

This table compares CRH and Texas Industries’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CRH $30.00 billion 1.03 $1.38 billion N/A N/A
Texas Industries N/A N/A N/A N/A N/A

CRH has higher revenue and earnings than Texas Industries.

Dividends

CRH pays an annual dividend of $0.72 per share and has a dividend yield of 1.9%. Texas Industries does not pay a dividend. Texas Industries has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current ratings and recommmendations for CRH and Texas Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CRH 0 1 3 0 2.75
Texas Industries 0 1 0 0 2.00

CRH presently has a consensus price target of $32.50, suggesting a potential downside of 12.35%. Texas Industries has a consensus price target of $82.00, suggesting a potential upside of Infinity. Given Texas Industries’ higher probable upside, analysts clearly believe Texas Industries is more favorable than CRH.

Institutional and Insider Ownership

3.4% of CRH shares are owned by institutional investors. 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.

Summary

CRH beats Texas Industries on 5 of the 7 factors compared between the two stocks.

CRH Company Profile

CRH public limited company (CRH plc) is a building materials company. The Company’s segments include Europe Heavyside, Europe Lightside, Europe Distribution, Americas Materials, Americas Products, Americas Distribution and Asia. Europe Heavyside segment is engaged in the manufacturing and supply of aggregates, asphalt, cement, readymixed and precast concrete and landscaping products. Europe Lightside segment manufactures and supplies products and solutions for customers in global construction markets. Through its Europe Distribution segment, the Company distributes building materials to professional builders, specialist heating and plumbing contractors, and Do-It-Yourself (DIY) customers. Americas Materials segment is a vertically integrated supplier of aggregates, asphalt, cement, readymixed concrete and paving and construction services. Through Americas Distribution segment, the Company is a distributor of roofing, siding, drywall, ceiling systems and related accessories.

Texas Industries Company Profile

Texas Industries, Inc. is a supplier of construction materials in the southwestern United States. The Company operates in three segments: cement, aggregates and consumer products. Its cement segment produces gray portland cement and specialty cements. The Company’s cement production and distribution facilities are concentrated primarily in Texas and California. Its aggregates segment produces natural aggregates, including sand, gravel and crushed limestone. The Company’s consumer products segment produces ready-mix concrete. It is also a supplier of natural aggregates and ready-mix concrete in Texas and northern Louisiana and in Oklahoma and Arkansas. As of May 31, 2013, the Company had 123 manufacturing facilities in five states. During the fiscal year ended May 31, 2013 (fiscal 2013), it produced approximately 4.3 million tons of finished cement. The Company produced approximately 14.2 million tons of natural aggregates during fiscal 2013.

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