Contrasting Vulcan Materials (VMC) and The Competition

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

Profitability

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This table compares Vulcan Materials and its rivals’ 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%

Analyst Ratings

This is a summary of current ratings for Vulcan Materials and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vulcan Materials 0 2 6 0 2.75
Vulcan Materials Competitors 193 706 868 28 2.41

Vulcan Materials currently has a consensus price target of $142.50, indicating a potential upside of 24.19%. As a group, “Mining & quarrying of nonmetallic minerals, except fuels” companies have a potential upside of 19.06%. Given Vulcan Materials’ stronger consensus rating and higher possible upside, analysts clearly believe Vulcan Materials is more favorable than its rivals.

Insider and Institutional Ownership

92.2% of Vulcan Materials shares are owned by institutional investors. Comparatively, 59.0% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are owned by institutional investors. 0.8% of Vulcan Materials shares are owned by insiders. Comparatively, 15.1% of shares of all “Mining & quarrying of nonmetallic minerals, except fuels” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Vulcan Materials has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Vulcan Materials’ rivals have a beta of 0.66, suggesting that their average stock price is 34% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Vulcan Materials $3.89 billion $601.18 million 37.74
Vulcan Materials Competitors $1.87 billion $261.07 million 14.82

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

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 increased its dividend for 4 consecutive years.

Summary

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

About Vulcan Materials

Vulcan Materials Company produces and supplies construction aggregates, asphalt mix, and ready-mixed concrete primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The Aggregates segment provides crushed stone, sand and gravel, sand, and other aggregates; and related products and services for use in the construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities. The Asphalt Mix segment offers asphalt mix in Arizona, California, New Mexico, Tennessee, and Texas. The Concrete segment provides ready-mixed concrete in California, Georgia, Maryland, New Mexico, Texas, Virginia, Washington D.C., and the Bahamas. The Calcium segment mines, produces, and sells calcium products for the animal feed, plastics, and water treatment industries. The company was formerly known as Virginia Holdco, Inc. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.

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