Comparing Vulcan Materials (NYSE:VMC) and Knife River (NYSE:KNF)

Vulcan Materials (NYSE:VMC) and Knife River (NYSE:KNF) are both materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

90.4% of Vulcan Materials shares are owned by institutional investors. Comparatively, 80.1% of Knife River shares are owned by institutional investors. 0.7% of Vulcan Materials shares are owned by insiders. Comparatively, 0.4% of Knife River shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Vulcan Materials and Knife River’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vulcan Materials	13.77%	13.03%	6.65%
Knife River	4.23%	8.73%	3.65%

Analyst Recommendations

This is a breakdown of current ratings and price targets for Vulcan Materials and Knife River, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vulcan Materials	1	9	12	0	2.50
Knife River	2	4	4	1	2.36

Vulcan Materials currently has a consensus price target of $310.72, indicating a potential upside of 4.28%. Knife River has a consensus price target of $69.29, indicating a potential upside of 11.23%. Given Knife River’s higher possible upside, analysts plainly believe Knife River is more favorable than Vulcan Materials.

Risk and Volatility

Vulcan Materials has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Knife River has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Valuation & Earnings

This table compares Vulcan Materials and Knife River”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vulcan Materials	$7.94 billion	4.82	$1.08 billion	$8.45	35.26
Knife River	$3.15 billion	1.12	$157.07 million	$2.45	25.42

Vulcan Materials has higher revenue and earnings than Knife River. Knife River is trading at a lower price-to-earnings ratio than Vulcan Materials, indicating that it is currently the more affordable of the two stocks.

Summary

Vulcan Materials beats Knife River on 13 of the 15 factors compared between the two stocks.

About Vulcan Materials

Vulcan Materials Company, together with its subsidiaries, produces and supplies construction aggregates primarily in the United States. It operates through four segments: Aggregates, Asphalt, Concrete, and Calcium. The company provides crushed stones, sand and gravel, sand, and other aggregates; and related products and services that are applied in construction and maintenance of highways, streets, and other public works, as well as in the construction of housing and commercial, industrial, and other nonresidential facilities. It also offers asphalt mix and asphalt construction paving services; ready-mixed concrete; and calcium products for the animal feed, plastics, and water treatment industries. The company was formerly known as Virginia Holdco, Inc. and changed its name to Vulcan Materials Company. Vulcan Materials Company was founded in 1909 and is headquartered in Birmingham, Alabama.

About Knife River

Knife River Corporation, together with its subsidiaries, provides aggregates- led construction materials and contracting services in the United States. It operates through Pacific, Northwest, Mountain, Central, and Energy Services segments. The company mines, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete. It also provides contracting service, such as heavy-civil construction, asphalt and concrete paving, and site development and grading. In addition, the company sells cement, merchandise, and other building materials and related services. The company sells its construction materials to public and private-sector customers, including federal, state, and municipal governments, as well as industrial, commercial and residential developers, and other private parties; and provides its contracting services to public-sector customers for the development and servicing of highways, local roads, bridges, and other public-infrastructure projects. Knife River Corporation was founded in 1917 and is based in Bismarck, North Dakota.