Financial Comparison: USG (USG) vs. MONARCH Cem Co/SH (MCEM)

USG (NYSE:USG) and MONARCH Cem Co/SH (OTCMKTS:MCEM) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and target prices for USG and MONARCH Cem Co/SH, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
USG 0 10 1 0 2.09
MONARCH Cem Co/SH 0 0 0 0 N/A

USG currently has a consensus target price of $41.58, suggesting a potential downside of 1.46%. Given USG’s higher possible upside, equities analysts plainly believe USG is more favorable than MONARCH Cem Co/SH.

Insider and Institutional Ownership

79.9% of USG shares are held by institutional investors. Comparatively, 0.4% of MONARCH Cem Co/SH shares are held by institutional investors. 0.7% of USG shares are held by insiders. Comparatively, 26.0% of MONARCH Cem Co/SH shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares USG and MONARCH Cem Co/SH’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
USG $3.20 billion 1.84 $88.00 million $1.80 23.44
MONARCH Cem Co/SH $165.23 million 1.56 $21.16 million N/A N/A

USG has higher revenue and earnings than MONARCH Cem Co/SH.

Dividends

MONARCH Cem Co/SH pays an annual dividend of $1.60 per share and has a dividend yield of 2.4%. USG does not pay a dividend.

Volatility and Risk

USG has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, MONARCH Cem Co/SH has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Profitability

This table compares USG and MONARCH Cem Co/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
USG 2.75% 13.93% 6.71%
MONARCH Cem Co/SH N/A N/A N/A

Summary

USG beats MONARCH Cem Co/SH on 10 of the 12 factors compared between the two stocks.

USG Company Profile

USG Corporation, through its subsidiaries, manufactures and sells building materials worldwide. The company's Gypsum division manufactures and markets gypsum and related products to construct walls, ceilings, roofs, and floors of residential, commercial, and institutional buildings, as well as for various industrial applications. This segment offers gypsum panels, as well as joint compounds, corner beads, joint tapes, and plasters for wallboard joints finishing under the Sheetrock brand; cement board and shower systems under the Durock brand; backer board that includes abuse-resistant interior wall panels, tile backer boards, and flooring underlayment under the Fiberock brand; poured gypsum flooring systems under the Levelrock brand; roof boards under the Securock brand; and air barrier systems under the ExoAir 430 brand. It also provides construction plaster products under the Red Top, Imperial, Diamond, and Supremo brands; and gypsum-based products for agricultural and industrial customers. The company's Ceilings division manufactures and markets interior system products, including ceiling tiles under the Radar, Eclipse, Mars, and Halcyon brands; ceiling grids under the Donn, DX, Fineline, Centricitee, and Identitee DXI brands; specialty ceilings under the Curvatura, Compasso, Radians, Illusions, Multiples, Runways, Barz, Planx, Mirra, Corniche, Wallforms, and Parti brands; and monolithic drywall under the Ensemble brand. Its USG Boral Building Products segment manufactures, distributes, and sells various building products and mines raw gypsum, as well as sells natural and synthetic gypsum. This segment offers products under the USG Boral Sheetrock, USG Boral NextGen, Elephant, Jayaboard, Durock, and Donn DX brands. The company distributes its products through building materials dealers, home improvement centers and other retailers, specialty wallboard distributors, and contractors. USG Corporation was founded in 1901 and is headquartered in Chicago, Illinois.

MONARCH Cem Co/SH Company Profile

The Monarch Cement Company manufactures and sells cement products in the United States. It primarily offers Portland cement and masonry cement. The company also sells ready-mixed concrete, concrete products, and sundry building materials. It primarily serves contractors, ready-mixed concrete plants, concrete products plants, building materials dealers, and governmental agencies. The company sells its products primarily in the Kansas, Iowa, southeast Nebraska, western Missouri, northwest Arkansas, and northern Oklahoma. The Monarch Cement Company was founded in 1908 and is based in Humboldt, Kansas.

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