Critical Analysis: Heidelberg Materials (HLBZF) & Its Peers

Heidelberg Materials (OTCMKTS:HLBZF) is one of 74 public companies in the “Construction Materials” industry, but how does it compare to its rivals? We will compare Heidelberg Materials to related businesses based on the strength of its analyst recommendations, valuation, profitability, dividends, institutional ownership, earnings and risk.

Institutional & Insider Ownership

33.9% of Heidelberg Materials shares are held by institutional investors. Comparatively, 46.6% of shares of all “Construction Materials” companies are held by institutional investors. 9.9% of shares of all “Construction Materials” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Heidelberg Materials and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Heidelberg Materials	N/A	N/A	N/A
Heidelberg Materials Competitors	4.41%	8.31%	5.03%

Analyst Recommendations

This is a summary of recent ratings and price targets for Heidelberg Materials and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Heidelberg Materials	0	1	4	0	2.80
Heidelberg Materials Competitors	402	2042	2819	83	2.48

As a group, “Construction Materials” companies have a potential upside of 426.24%. Given Heidelberg Materials’ rivals higher probable upside, analysts plainly believe Heidelberg Materials has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Heidelberg Materials and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Heidelberg Materials	N/A	N/A	76.58
Heidelberg Materials Competitors	$6.81 billion	$651.37 million	32.54

Heidelberg Materials’ rivals have higher revenue and earnings than Heidelberg Materials. Heidelberg 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

Heidelberg Materials pays an annual dividend of $0.60 per share and has a dividend yield of 0.3%. Heidelberg Materials pays out 24.8% of its earnings in the form of a dividend. As a group, “Construction Materials” companies pay a dividend yield of 183.3% and pay out 31.6% of their earnings in the form of a dividend.

Summary

Heidelberg Materials rivals beat Heidelberg Materials on 9 of the 13 factors compared.

Heidelberg Materials Company Profile

Heidelberg Materials AG, together with its subsidiaries, produces and distributes cement, aggregates, ready-mixed concrete, and asphalt worldwide. It provides cement products; natural stone aggregates, including sand and gravel; crushed aggregates comprising stone chippings and crushed stones; and ready-mixed concrete for use in the construction of tunnels or bridges, office buildings, or schools, as well as to produce precast concrete parts, such as stairs, ceiling elements, or structural components. The company offers asphalt; and trades in cement, clinker, secondary cementitious materials, solid, alternative fuels, other building materials, and additives. The company was formerly known as HeidelbergCement AG and changed its name to Heidelberg Materials AG in May 2023. Heidelberg Materials AG was founded in 1873 and is headquartered in Heidelberg, Germany.