Contrasting Vulcan Materials (VMC) and Its Competitors

Vulcan Materials (NYSE: VMC) is one of 21 public companies in the “Mining & quarrying of nonmetallic minerals, except fuels” industry, but how does it contrast to its competitors? We will compare Vulcan Materials to related companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, profitability, earnings and valuation.

Earnings & Valuation

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This table compares Vulcan Materials and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Vulcan Materials $3.89 billion $601.18 million 37.36
Vulcan Materials Competitors $1.87 billion $261.07 million 14.61

Vulcan Materials has higher revenue and earnings than its competitors. Vulcan Materials is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

92.2% of Vulcan Materials shares are held by institutional investors. Comparatively, 59.0% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are held by institutional investors. 0.9% of Vulcan Materials shares are held by insiders. Comparatively, 15.6% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Vulcan Materials pays an annual dividend of $1.12 per share and has a dividend yield of 1.0%. Vulcan Materials pays out 36.8% of its earnings in the form of a dividend. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies pay a dividend yield of 2.0% and pay out 46.8% of their earnings in the form of a dividend. Vulcan Materials has raised its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Vulcan Materials and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vulcan Materials 0 2 6 0 2.75
Vulcan Materials Competitors 195 698 858 28 2.40

Vulcan Materials currently has a consensus target price of $145.13, indicating a potential upside of 27.80%. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies have a potential upside of 21.76%. Given Vulcan Materials’ stronger consensus rating and higher probable upside, analysts clearly believe Vulcan Materials is more favorable than its competitors.

Risk and Volatility

Vulcan Materials has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Vulcan Materials’ competitors have a beta of 0.67, indicating that their average share price is 33% less volatile than the S&P 500.

Profitability

This table compares Vulcan Materials and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vulcan Materials 15.45% 8.68% 4.34%
Vulcan Materials Competitors 8.93% 9.40% 4.85%

Summary

Vulcan Materials beats its competitors on 10 of the 15 factors compared.

About Vulcan Materials

Vulcan Materials Company is a supplier of construction aggregates (primarily crushed stone, sand and gravel) and a producer of asphalt mix and ready-mixed concrete. The Company operates through four segments: Aggregates, Asphalt Mix, Concrete and Calcium. The Aggregates segment produces and sells aggregates (crushed stone, sand and gravel, sand, and other aggregates) and related products and services (transportation and other). The Company produces and sells asphalt mix in Arizona, California, New Mexico and Texas. The Company produces and sells ready-mixed concrete in Georgia, Maryland, New Mexico, Texas, Virginia, Washington District of Columbia and the Bahamas. The Calcium segment consists of a Florida facility that mines, produces and sells calcium products. As of December 31, 2016, it had 337 active aggregates facilities. The Company sells aggregates that are used as ballast for construction and maintenance of railroad tracks.

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