Critical Survey: Cementos Pacasmayo S.A.A. (NYSE:CPAC) versus Knife River (NYSE:KNF)

Cementos Pacasmayo S.A.A. (NYSE:CPAC) and Knife River (NYSE:KNF) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Profitability

This table compares Cementos Pacasmayo S.A.A. and Knife River’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cementos Pacasmayo S.A.A.	9.42%	16.49%	6.74%
Knife River	4.23%	8.73%	3.65%

Valuation and Earnings

This table compares Cementos Pacasmayo S.A.A. and Knife River”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cementos Pacasmayo S.A.A.	$593.95 million	1.70	$43.27 million	$0.72	16.56
Knife River	$3.15 billion	1.22	$157.07 million	$2.57	26.29

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

Risk and Volatility

Cementos Pacasmayo S.A.A. has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Knife River has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Institutional and Insider Ownership

80.1% of Knife River shares are held by institutional investors. 0.2% of Cementos Pacasmayo S.A.A. shares are held by insiders. Comparatively, 0.4% of Knife River shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Cementos Pacasmayo S.A.A. and Knife River, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cementos Pacasmayo S.A.A.	0	4	0	0	2.00
Knife River	0	4	6	0	2.60

Cementos Pacasmayo S.A.A. currently has a consensus price target of $13.00, indicating a potential upside of 9.01%. Knife River has a consensus price target of $91.86, indicating a potential upside of 35.96%. Given Knife River’s stronger consensus rating and higher probable upside, analysts plainly believe Knife River is more favorable than Cementos Pacasmayo S.A.A..

Summary

Knife River beats Cementos Pacasmayo S.A.A. on 9 of the 14 factors compared between the two stocks.

About Cementos Pacasmayo S.A.A.

Cementos Pacasmayo S.A.A., a cement company, produces, distributes, and sells cement and cement-related materials in Peru. It operates through three segments: Cement, Concrete, Mortar and Precast; Quicklime; and Sales of Construction Supplies. The company’s cement and concrete products are used in residential and commercial construction, and civil engineering; ready-mix concrete used in construction sites; concrete precast, such as paving units or paver stones for pedestrian walkways, as well as other bricks for partition walls and concrete precast for structural and non-structural uses; and cement-based products. It also produces and distributes quicklime for use in steel, food, fishing, and chemical industries. In addition, the company sells and distributes other construction materials manufactured by third parties, such as steel rebar, plastic pipes, and electrical wires. It offers its products directly to other retailers, private construction companies, and government entities through a network of independent retailers and hardware stores. The company was incorporated in 1949 and is headquartered in Lima, Peru. Cementos Pacasmayo S.A.A. is a subsidiary of Inversiones ASPI S.A.

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.