In the present study, a comparison of the thermal-insulation and mechanical performances of cement and heat-stabilized compressed earthen blocks (CEBs) was carried out to determine the factors which influence those properties. The raw clays used consist mainly of kaolinite, orthoclase and quartz. The mechanical strength increased with increase in both the amount of cement added and the firing temperature. However, the responses are better for cement-stabilized CEBs. The thermal insulation of fired bricks is greater than that of cement-stabilized bricks. This difference was related to the decrease in porosity and the formation of continuous-surface. The decrease in thermal insulation is mainly related to the formation of continuous-surface in cement-stabilized CEBs, whereas in the fired CEBs, it is due to the modification of pore volume. The mineralogy of the raw clays is statistically correlated to porosity and continuous-surface development that were confirmed as the main factors in the modification of both the mechanical strength and the thermal insulation. In cement-stabilization, the decrease in insulation is due to the development of continuous surface, while for heat-stabilization, mineral transformations during the sintering reduced continuous-surface formation and the insulation was controlled by both radiation and reduced surface conduction. The influence of the mineralogy of the raw material shows that clay content favours the insulation in fired bricks obtained at T ≤ 1000°C, while sand contents favour densification. In contrast, clay contents reduce the mechanical response of cement-stabilized material due to limited cement–clay interactions. In general, the mechanical response is more favourable in cement stabilization, while thermal insulation is better in fired bricks.