Head-To-Head Analysis: Cementos Pacasmayo S.A.A. (CPAC) and Its Peers

Cementos Pacasmayo S.A.A. (NYSE:CPAC) is one of 74 publicly-traded companies in the “Construction Materials” industry, but how does it weigh in compared to its competitors? We will compare Cementos Pacasmayo S.A.A. to similar companies based on the strength of its profitability, analyst recommendations, earnings, valuation, institutional ownership, dividends and risk.

Risk & Volatility

Cementos Pacasmayo S.A.A. has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Cementos Pacasmayo S.A.A.’s competitors have a beta of 0.90, indicating that their average stock price is 10% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Cementos Pacasmayo S.A.A. and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cementos Pacasmayo S.A.A.	0	4	0	0	2.00
Cementos Pacasmayo S.A.A. Competitors	404	2048	2828	83	2.48

Cementos Pacasmayo S.A.A. presently has a consensus target price of $13.00, suggesting a potential upside of 10.45%. As a group, “Construction Materials” companies have a potential upside of 403.66%. Given Cementos Pacasmayo S.A.A.’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Cementos Pacasmayo S.A.A. has less favorable growth aspects than its competitors.

Dividends

Cementos Pacasmayo S.A.A. pays an annual dividend of $0.56 per share and has a dividend yield of 4.8%. Cementos Pacasmayo S.A.A. pays out 77.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Construction Materials” companies pay a dividend yield of 177.1% and pay out 31.6% of their earnings in the form of a dividend. Cementos Pacasmayo S.A.A. lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Cementos Pacasmayo S.A.A. and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cementos Pacasmayo S.A.A.	$593.95 million	$43.27 million	16.35
Cementos Pacasmayo S.A.A. Competitors	$6.80 billion	$651.37 million	32.48

Cementos Pacasmayo S.A.A.’s competitors have higher revenue and earnings than Cementos Pacasmayo S.A.A.. Cementos Pacasmayo S.A.A. is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Cementos Pacasmayo S.A.A. and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cementos Pacasmayo S.A.A.	9.42%	16.49%	6.74%
Cementos Pacasmayo S.A.A. Competitors	4.78%	8.28%	5.03%

Institutional and Insider Ownership

46.5% of shares of all “Construction Materials” companies are held by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are held by company insiders. Comparatively, 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 company will outperform the market over the long term.

Summary

Cementos Pacasmayo S.A.A. competitors beat Cementos Pacasmayo S.A.A. on 12 of the 15 factors compared.

About Cementos Pacasmayo S.A.A.

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in Peru. It operates through three segments: Cement, Concrete, Mortar and Precast; Quicklime; and Sales of Construction Supplies. The company’s cement and concrete products are used in residential and commercial construction, and civil engineering; ready-mix concrete used in construction sites; concrete precast, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete precast for structural and non-structural uses; and cement-based products. It also produces and distributes quicklime for use in steel, food, fishing, and chemical industries. In addition, the company sells and distributes other construction materials manufactured by third parties, such as steel rebar, plastic pipes, and electrical wires. It offers its products directly to other retailers, private construction companies, and government entities through a network of independent retailers and hardware stores. The company was incorporated in 1949 and is headquartered in Lima, Peru. Cementos Pacasmayo S.A.A. is a subsidiary of Inversiones ASPI S.A.