Comparing Loma Negra Compania Industrial Argentina (NYSE:LOMA) and Persimmon (OTCMKTS:PSMMY)

Persimmon (OTCMKTS:PSMMY) and Loma Negra Compania Industrial Argentina (NYSE:LOMA) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Risk & Volatility

Persimmon has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Loma Negra Compania Industrial Argentina has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Profitability

This table compares Persimmon and Loma Negra Compania Industrial Argentina’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Persimmon	N/A	N/A	N/A
Loma Negra Compania Industrial Argentina	4.38%	3.27%	1.83%

Institutional & Insider Ownership

19.3% of Loma Negra Compania Industrial Argentina shares are owned by institutional investors. 0.6% of Persimmon shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Persimmon and Loma Negra Compania Industrial Argentina, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Persimmon	0	0	4	1	3.20
Loma Negra Compania Industrial Argentina	0	1	2	0	2.67

Loma Negra Compania Industrial Argentina has a consensus target price of $15.50, suggesting a potential upside of 46.39%. Given Loma Negra Compania Industrial Argentina’s higher probable upside, analysts plainly believe Loma Negra Compania Industrial Argentina is more favorable than Persimmon.

Earnings and Valuation

This table compares Persimmon and Loma Negra Compania Industrial Argentina”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Persimmon	$4.95 billion	0.94	$376.75 million	N/A	N/A
Loma Negra Compania Industrial Argentina	$850.48 billion	0.00	$18.87 million	$0.24	44.12

Persimmon has higher earnings, but lower revenue than Loma Negra Compania Industrial Argentina.

Dividends

Persimmon pays an annual dividend of $0.90 per share and has a dividend yield of 3.1%. Loma Negra Compania Industrial Argentina pays an annual dividend of $0.39 per share and has a dividend yield of 3.7%. Loma Negra Compania Industrial Argentina pays out 162.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Persimmon beats Loma Negra Compania Industrial Argentina on 8 of the 15 factors compared between the two stocks.

About Persimmon

Persimmon Plc, together with its subsidiaries, operates as a house builder in the United Kingdom. The company offers family housing under the Persimmon Homes brand name; housing under the Charles Church brand name; and social housing under the Westbury Partnerships brand name. It also provides broadband services under the FibreNest brand; and timber frame, insulated wall panels, and roof cassettes under the brand Space4. Further, it offers concrete bricks and roof tile. Persimmon Plc was founded in 1972 and is headquartered in York, the United Kingdom.

About Loma Negra Compania Industrial Argentina

Loma Negra Compañía Industrial Argentina Sociedad Anónima, together with its subsidiaries, manufactures and sells cement and its derivatives in Argentina. The company operates through Cement, Masonry Cement and Lime; Concrete; Railroad; Aggregates; and Others segments. It offers masonry cement, aggregates, ready-mix concrete, concrete, and lime to wholesale distributors, concrete producers, industrial customers, and others for use in the construction. The company also provides rail transportation services; and treats and recycles industrial waste for use as fuel and raw material. It markets its products under the Loma Negra, San Martín, Plasticor, Cacique Plus, Cacique Max, Loma Negra Plus, and Lomax brands. The company was founded in 1926 and is based in Buenos Aires, Argentina. Loma Negra Compañía Industrial Argentina Sociedad Anónima is a subsidiary of Intercement Trading E Inversiones Argentina Sociedad Limitada.