Head-To-Head Analysis: Arcosa (NYSE:ACA) vs. UltraTech Cement (OTCMKTS:UCLQF)

UltraTech Cement (OTCMKTS:UCLQF) and Arcosa (NYSE:ACA) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Profitability

This table compares UltraTech Cement and Arcosa’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UltraTech Cement	N/A	N/A	N/A
Arcosa	17.90%	7.90%	4.22%

Earnings and Valuation

This table compares UltraTech Cement and Arcosa”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UltraTech Cement	N/A	N/A	N/A	$84.03	1.22
Arcosa	$2.88 billion	2.47	$208.40 million	$9.98	14.55

Arcosa has higher revenue and earnings than UltraTech Cement. UltraTech Cement is trading at a lower price-to-earnings ratio than Arcosa, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for UltraTech Cement and Arcosa, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UltraTech Cement	0	0	0	0	0.00
Arcosa	0	4	3	0	2.43

Arcosa has a consensus price target of $141.25, indicating a potential downside of 2.74%. Given Arcosa’s stronger consensus rating and higher possible upside, analysts clearly believe Arcosa is more favorable than UltraTech Cement.

Insider and Institutional Ownership

0.1% of UltraTech Cement shares are owned by institutional investors. Comparatively, 90.7% of Arcosa shares are owned by institutional investors. 1.8% of Arcosa shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

UltraTech Cement pays an annual dividend of $8.54 per share and has a dividend yield of 8.3%. Arcosa pays an annual dividend of $0.20 per share and has a dividend yield of 0.1%. UltraTech Cement pays out 10.2% of its earnings in the form of a dividend. Arcosa pays out 2.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Arcosa beats UltraTech Cement on 11 of the 13 factors compared between the two stocks.

About UltraTech Cement

UltraTech Cement Limited, together with its subsidiaries, manufactures and sells cement and cement related products in India. It offers ordinary Portland cement, Portland blast furnace slag cement, Portland Pozzolana cement, ready mix concrete, white cement, and white cement-based products; and ready-mix concrete. The company provides Tile Adhesive polymer under TILEFIXO, FLEX, HIFLEX; Seal & Dry water proofing products for kitchen balconies, chajjas, slope roofs, bathrooms, canal linings, swimming pools, and water tanks; Power Grout, an industrial grout for machine foundation, precast elements, and safety vaults; Readi Plast and Super Stucco, a plastering agent for internal and external walls; as well as liquid system for mortar and concrete modifier, repair mortars and concrete under the name of Basekrete and Microkrete. In addition, the company offers bed jointing material for AAC block, Fly Ash Bricks, and concrete blocks, and light weight block for masonry construction, and flooring screeds. Further, the company offers construction products for home builders; and value-added services that include technical advice during concreting, vaastu consultancy, various training programs, and other related services. The company exports its products to the United Arab Emirates, Bahrain, and Sri Lanka. UltraTech Cement Limited was incorporated in 2000 and is based in Mumbai, India. The company operates as a subsidiary of Grasim Industries Limited.

About Arcosa

Arcosa, Inc., together with its subsidiaries, provides infrastructure-related products and solutions for the construction, engineered structures, and transportation markets in the United States. It operates through three segments: Construction Products, Engineered Structures, and Transportation Products. The Construction Products segment offers natural and recycled aggregates; specialty materials; and construction site support equipment, including trench shields and shoring products for residential and non-residential construction, and specialty/other products, as well as for infrastructure construction. The Engineered Structures segment offers utility structures, wind towers, traffic structures, and telecommunication structures for electricity transmission and distribution, wind power generation, highway road construction, and wireless communication markets. The Transportation Products segment offers inland barges, fiberglass barge covers, winches, marine hardware, and steel components for railcars and transportation equipment; cast components for industrial and mining sectors; and axles, circular forgings, and coupling devices for freight, tank, locomotive, and passenger rail transportation equipment, as well as other industrial uses. Arcosa, Inc. was incorporated in 2018 and is headquartered in Dallas, Texas.