CMC vs. STLD, RS, X, CLF, ATI, 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), Cleveland-Cliffs (CLF), ATI (ATI), 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.
Steel Dynamics (NASDAQ:STLD) and Commercial Metals (NYSE:CMC) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their media sentiment, valuation, community ranking, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.
Steel Dynamics has a net margin of 12.89% compared to Steel Dynamics' net margin of 8.09%. Commercial Metals' return on equity of 27.62% beat Steel Dynamics' return on equity.
Steel Dynamics presently has a consensus price target of $125.29, indicating a potential downside of 6.41%. Commercial Metals has a consensus price target of $57.67, indicating a potential upside of 2.39%. Given Steel Dynamics' stronger consensus rating and higher possible upside, analysts plainly believe Commercial Metals is more favorable than Steel Dynamics.
Steel Dynamics pays an annual dividend of $1.84 per share and has a dividend yield of 1.4%. Commercial Metals pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Steel Dynamics pays out 12.6% of its earnings in the form of a dividend. Commercial Metals pays out 12.5% 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 has increased its dividend for 12 consecutive years and Commercial Metals has increased its dividend for 4 consecutive years. Steel Dynamics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
82.4% of Steel Dynamics shares are owned by institutional investors. Comparatively, 86.9% of Commercial Metals shares are owned by institutional investors. 6.0% of Steel Dynamics shares are owned by company insiders. Comparatively, 1.0% of Commercial Metals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Steel Dynamics has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Commercial Metals has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.
In the previous week, Commercial Metals had 2 more articles in the media than Steel Dynamics. MarketBeat recorded 7 mentions for Commercial Metals and 5 mentions for Steel Dynamics. Commercial Metals' average media sentiment score of 1.32 beat Steel Dynamics' score of 1.16 indicating that Steel Dynamics is being referred to more favorably in the media.
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.
Steel Dynamics received 502 more outperform votes than Commercial Metals when rated by MarketBeat users. Likewise, 68.30% of users gave Steel Dynamics an outperform vote while only 54.25% of users gave Commercial Metals an outperform vote.
Summary
Steel Dynamics beats Commercial Metals on 14 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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