CMC vs. STLD, RS, X, ATI, CLF, CRS, WOR, HAYN, ZEUS, and RDUS
Should you be buying Commercial Metals stock or one of its competitors? The main competitors of Commercial Metals include Steel Dynamics (STLD), Reliance (RS), United States Steel (X), ATI (ATI), Cleveland-Cliffs (CLF), Carpenter Technology (CRS), Worthington Enterprises (WOR), Haynes International (HAYN), Olympic Steel (ZEUS), and Radius Recycling (RDUS). These companies are all part of the "steel" industry.
Commercial Metals (NYSE:CMC) and Steel Dynamics (NASDAQ:STLD) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, media sentiment, profitability, earnings, valuation, dividends, community ranking and analyst recommendations.
Commercial Metals has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500.
86.9% of Commercial Metals shares are owned by institutional investors. Comparatively, 82.4% of Steel Dynamics shares are owned by institutional investors. 1.0% of Commercial Metals shares are owned by insiders. Comparatively, 6.0% of Steel Dynamics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
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.
In the previous week, Steel Dynamics had 9 more articles in the media than Commercial Metals. MarketBeat recorded 15 mentions for Steel Dynamics and 6 mentions for Commercial Metals. Commercial Metals' average media sentiment score of 1.25 beat Steel Dynamics' score of 1.06 indicating that Commercial Metals is being referred to more favorably in the media.
Commercial Metals currently has a consensus price target of $60.50, suggesting a potential upside of 0.25%. Steel Dynamics has a consensus price target of $133.86, suggesting a potential upside of 2.54%. Given Steel Dynamics' higher possible upside, analysts clearly believe Steel Dynamics is more favorable than Commercial Metals.
Steel Dynamics has a net margin of 11.10% compared to Commercial Metals' net margin of 6.95%. Steel Dynamics' return on equity of 22.89% beat Commercial Metals' return on equity.
Commercial Metals pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. Steel Dynamics pays an annual dividend of $1.84 per share and has a dividend yield of 1.4%. Commercial Metals pays out 15.0% of its earnings in the form of a dividend. Steel Dynamics pays out 12.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Steel Dynamics is clearly the better dividend stock, given its higher yield and lower payout ratio.
Steel Dynamics received 501 more outperform votes than Commercial Metals when rated by MarketBeat users. Likewise, 68.14% of users gave Steel Dynamics an outperform vote while only 54.06% of users gave Commercial Metals an outperform vote.
Summary
Steel Dynamics beats Commercial Metals on 15 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CMC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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