CRH (NYSE:CRH – Get Free Report) and James Hardie Industries (NYSE:JHX – Get Free Report) are both large-cap materials companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.
Insider & Institutional Ownership
62.5% of CRH shares are owned by institutional investors. Comparatively, 8.0% of James Hardie Industries shares are owned by institutional investors. 0.1% of CRH shares are owned by company insiders. Comparatively, 1.2% of James Hardie Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Risk and Volatility
CRH has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, James Hardie Industries has a beta of 1.79, suggesting that its share price is 79% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for CRH and James Hardie Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CRH | 0 | 1 | 18 | 1 | 3.00 |
| James Hardie Industries | 1 | 1 | 10 | 0 | 2.75 |
CRH presently has a consensus target price of $126.50, indicating a potential upside of 48.24%. James Hardie Industries has a consensus target price of $33.89, indicating a potential upside of 30.12%. Given CRH’s stronger consensus rating and higher possible upside, research analysts clearly believe CRH is more favorable than James Hardie Industries.
Profitability
This table compares CRH and James Hardie Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CRH | 9.93% | 15.76% | 6.64% |
| James Hardie Industries | 2.69% | 10.56% | 4.93% |
Valuation and Earnings
This table compares CRH and James Hardie Industries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CRH | $37.45 billion | 1.52 | $3.73 billion | $5.67 | 15.05 |
| James Hardie Industries | $4.84 billion | 3.13 | $104.00 million | $0.25 | 104.18 |
CRH has higher revenue and earnings than James Hardie Industries. CRH is trading at a lower price-to-earnings ratio than James Hardie Industries, indicating that it is currently the more affordable of the two stocks.
Summary
CRH beats James Hardie Industries on 11 of the 15 factors compared between the two stocks.
About CRH
CRH plc, together with its subsidiaries, provides building materials solutions in Ireland and internationally. It operates through four segments: Americas Materials Solutions, Americas Building Solutions, Europe Materials Solutions, and Europe Building Solutions. The company provides solutions for the construction and maintenance of public infrastructure and commercial and residential buildings; and produces and sells aggregates, cement, readymixed concrete, and asphalt, as well as provides paving and construction services. It also manufactures, supplies, and delivers solutions for the built environment in communities across North America; and offers building and infrastructure solutions serving complex critical utility infrastructure, such as water, energy, transportation, and telecommunications projects, and outdoor living solutions for enhancing private and public spaces. In addition, the company combines materials, products, and services to produce a wide range of architectural and infrastructural solutions for use in the building and renovation of critical utility infrastructure, commercial and residential buildings, and outdoor living spaces for the built environment. Further, it produces and supplies precast and pre-stressed concrete products comprising floor and wall elements, beams, vaults, pipes, and manholes; granite, limestone, and sandstone; concrete and polymer-based products, such as underground vaults, drainage systems, utility enclosures, and modular precast structures; engineered steel, polymer-based anchoring, fixing, and connecting solutions; concrete masonry, hardscape and related products, including pavers, blocks and curbs, retaining walls, and slabs; and fencing and railing systems, composite decking, lawn and garden products, and packaged concrete mixes. The company was founded in 1936 and is headquartered in Dublin, Ireland.
About James Hardie Industries
James Hardie Industries plc manufactures and sells fiber cement, fiber gypsum, and cement bonded building products for interior and exterior building construction applications primarily in the United States, Australia, Europe, New Zealand, and the Philippines. The company operates through North America Fiber Cement, Asia Pacific Fiber Cement, and Europe Building Products segments. It offers fiber cement interior linings, exterior siding products, and related accessories; and various fiber cement products for a range of applications, including external cladding, internal walls, ceilings, floors, soffits, fences, and facades. The company also provides fiber gypsum and cement-bonded boards for use in the timber frame construction, dry lining, DIY, and structural fire protection applications. Its products are used in residential repair and remodel, and commercial and residential new construction markets James Hardie Industries plc was founded in 1888 and is based in Dublin, Ireland.
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