Commercial Metals (CMC) Competitors

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

Is CMC or STLD more profitable?

Steel Dynamics has a net margin of 6.07% compared to Commercial Metals' net margin of 0.48%. Steel Dynamics' return on equity of 11.88% beat Commercial Metals' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Commercial Metals	0.48%	7.45%	4.49%
Steel Dynamics	6.07%	11.88%	6.71%

Do institutionals and insiders 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 insiders. Comparatively, 6.3% of Steel Dynamics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Which has more volatility and risk, CMC or STLD?

Commercial Metals has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Do analysts prefer CMC or STLD?

Commercial Metals currently has a consensus price target of $57.50, suggesting a potential upside of 1.56%. Steel Dynamics has a consensus price target of $149.33, suggesting a potential upside of 17.61%. Given Steel Dynamics' stronger consensus rating and higher probable upside, analysts clearly believe Steel Dynamics is more favorable than Commercial Metals.

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

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 1.3%. Steel Dynamics pays an annual dividend of $2.00 per share and has a dividend yield of 1.6%. Commercial Metals pays out 232.3% 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 29.2% of its earnings in the form of a dividend. Commercial Metals has increased its dividend for 4 consecutive years and Steel Dynamics has increased its dividend for 13 consecutive years. Steel Dynamics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Which has stronger valuation and 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	$7.93B	0.80	$485.49M	$0.31	182.63
Steel Dynamics	$17.54B	1.07	$1.54B	$6.86	18.51

Does the media refer more to CMC or STLD?

In the previous week, Steel Dynamics had 10 more articles in the media than Commercial Metals. MarketBeat recorded 15 mentions for Steel Dynamics and 5 mentions for Commercial Metals. Steel Dynamics' average media sentiment score of 1.78 beat Commercial Metals' score of 1.51 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	5 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Steel Dynamics	13 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Summary

Steel Dynamics beats Commercial Metals on 17 of the 19 factors compared between the two stocks.