Heidelberg Materials (HLBZF) versus Its Rivals Critical Review

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

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 178.1% and pay out 31.6% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Heidelberg Materials and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Heidelberg Materials	N/A	N/A	79.21
Heidelberg Materials Competitors	$6.78 billion	$651.37 million	31.57

Heidelberg Materials’ peers have higher revenue and earnings than Heidelberg Materials. Heidelberg Materials is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Heidelberg Materials and its peers’ 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	4.71%	8.19%	5.10%

Institutional & Insider Ownership

33.9% of Heidelberg Materials shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Construction Materials” companies are owned by institutional investors. 10.0% of shares of all “Construction Materials” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and price targets for Heidelberg Materials and its peers, 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	406	2055	2837	83	2.48

As a group, “Construction Materials” companies have a potential upside of 406.93%. Given Heidelberg Materials’ peers higher probable upside, analysts plainly believe Heidelberg Materials has less favorable growth aspects than its peers.

Summary

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

About Heidelberg Materials

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.