Continental Building Products (NYSE:CBPX) and Monarch Cement (OTCMKTS:MCEM) are both small-cap construction companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Continental Building Products and Monarch Cement’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Continental Building Products 15.10% 21.14% 10.66%
Monarch Cement N/A N/A N/A

Dividends

Monarch Cement pays an annual dividend of $1.60 per share and has a dividend yield of 2.5%. Continental Building Products does not pay a dividend.

Valuation & Earnings

This table compares Continental Building Products and Monarch Cement’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Continental Building Products $489.16 million 2.03 $59.84 million $1.33 20.25
Monarch Cement $165.23 million 1.48 $21.16 million N/A N/A

Continental Building Products has higher revenue and earnings than Monarch Cement.

Volatility & Risk

Continental Building Products has a beta of 1.5, suggesting that its stock price is 50% more volatile than the S&P 500. Comparatively, Monarch Cement has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Continental Building Products and Monarch Cement, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Continental Building Products 0 5 2 0 2.29
Monarch Cement 0 0 0 0 N/A

Continental Building Products presently has a consensus target price of $34.14, indicating a potential upside of 26.78%. Given Continental Building Products’ higher possible upside, analysts plainly believe Continental Building Products is more favorable than Monarch Cement.

Institutional & Insider Ownership

98.6% of Continental Building Products shares are held by institutional investors. Comparatively, 0.5% of Monarch Cement shares are held by institutional investors. 0.5% of Continental Building Products shares are held by company insiders. Comparatively, 26.0% of Monarch Cement shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Continental Building Products beats Monarch Cement on 10 of the 12 factors compared between the two stocks.

Continental Building Products Company Profile

Continental Building Products, Inc. manufactures and sells gypsum wallboard and complementary finishing products in the eastern United States and eastern Canada. The company sells its products to gypsum wallboard distributors, buying groups, wholesalers, and mass merchants in the new residential, repair and remodel, and commercial construction markets under the LiftLite, Mold Defense, and Weather Defense brand names. Continental Building Products, Inc. is headquartered in Herndon, Virginia.

Monarch Cement Company Profile

The Monarch Cement Company manufactures and sells cement products in the United States. It primarily offers Portland cement and masonry cement. The company also sells ready-mixed concrete, concrete products, and sundry building materials. It primarily serves contractors, ready-mixed concrete plants, concrete products plants, building materials dealers, and governmental agencies. The company sells its products primarily in the Kansas, Iowa, southeast Nebraska, western Missouri, northwest Arkansas, and northern Oklahoma. The Monarch Cement Company was founded in 1908 and is based in Humboldt, Kansas.

Receive News & Ratings for Continental Building Products Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Continental Building Products and related companies with MarketBeat.com's FREE daily email newsletter.