Commercial Metals (CMC) Competitors

Commercial Metals (NYSE:CMC) and Steel Dynamics (NASDAQ:STLD) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their media sentiment, profitability, risk, dividends, institutional ownership, community ranking, earnings, valuation and analyst recommendations.

Which has more risk & volatility, CMC or STLD?

Commercial Metals has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Do insiders & institutionals believe in CMC or STLD?

86.9% of Commercial Metals shares are owned by institutional investors. Comparatively, 82.4% of Steel Dynamics shares are owned by institutional investors. 0.5% of Commercial Metals shares are owned by company insiders. Comparatively, 6.3% of Steel Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Which has stronger valuation & earnings, CMC or STLD?

Steel Dynamics has higher revenue and earnings than Commercial Metals. Steel Dynamics is trading at a lower price-to-earnings ratio than Commercial Metals, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commercial Metals	$7.74B	0.65	$485.49M	$0.60	74.27
Steel Dynamics	$17.22B	1.13	$1.54B	$7.57	17.13

Does the media prefer CMC or STLD?

In the previous week, Steel Dynamics had 10 more articles in the media than Commercial Metals. MarketBeat recorded 26 mentions for Steel Dynamics and 16 mentions for Commercial Metals. Steel Dynamics' average media sentiment score of 1.43 beat Commercial Metals' score of 0.61 indicating that Steel Dynamics is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Commercial Metals	8 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Steel Dynamics	18 Very Positive mention(s)	5 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is CMC or STLD a better dividend stock?

Commercial Metals pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. Steel Dynamics pays an annual dividend of $2.00 per share and has a dividend yield of 1.5%. Commercial Metals pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Steel Dynamics pays out 26.4% of its earnings in the form of a dividend.

Does the MarketBeat Community favor CMC or STLD?

Steel Dynamics received 507 more outperform votes than Commercial Metals when rated by MarketBeat users. Likewise, 67.09% of users gave Steel Dynamics an outperform vote while only 53.41% of users gave Commercial Metals an outperform vote.

Company	Underperform	Outperform
Commercial Metals	Outperform Votes 337 53.41%	Underperform Votes 294 46.59%
Steel Dynamics	Outperform Votes 844 67.09%	Underperform Votes 414 32.91%

Is CMC or STLD more profitable?

Steel Dynamics has a net margin of 8.76% compared to Commercial Metals' net margin of 1.70%. Steel Dynamics' return on equity of 17.32% beat Commercial Metals' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Commercial Metals	1.70%	9.88%	6.16%
Steel Dynamics	8.76%	17.32%	10.13%

Do analysts prefer CMC or STLD?

Commercial Metals currently has a consensus target price of $60.33, suggesting a potential upside of 35.40%. Steel Dynamics has a consensus target price of $147.44, suggesting a potential upside of 13.67%. Given Commercial Metals' higher possible upside, equities analysts clearly believe Commercial Metals is more favorable than Steel Dynamics.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commercial Metals	0 Sell rating(s)	5 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.38
Steel Dynamics	0 Sell rating(s)	3 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.73

Summary

Steel Dynamics beats Commercial Metals on 16 of the 20 factors compared between the two stocks.