Commercial Metals (CMC) Competitors

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 valuation, community ranking, earnings, dividends, risk, profitability, media sentiment, analyst recommendations and institutional ownership.

Does the media favor STLD or CMC?

In the previous week, Steel Dynamics had 11 more articles in the media than Commercial Metals. MarketBeat recorded 17 mentions for Steel Dynamics and 6 mentions for Commercial Metals. Commercial Metals' average media sentiment score of 1.13 beat Steel Dynamics' score of 0.89 indicating that Commercial Metals is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Steel Dynamics	11 Very Positive mention(s)	2 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
Commercial Metals	4 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals & insiders believe in STLD or CMC?

82.4% of Steel Dynamics shares are held by institutional investors. Comparatively, 86.9% of Commercial Metals shares are held by institutional investors. 6.1% of Steel Dynamics shares are held by insiders. Comparatively, 0.5% of Commercial Metals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Is STLD or CMC a better dividend stock?

Steel Dynamics pays an annual dividend of $1.84 per share and has a dividend yield of 1.5%. Commercial Metals pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. Steel Dynamics pays out 16.7% of its earnings in the form of a dividend. Commercial Metals pays out 64.9% 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 raised its dividend for 12 consecutive years. Steel Dynamics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Is STLD or CMC more profitable?

Steel Dynamics has a net margin of 9.80% compared to Commercial Metals' net margin of 1.70%. Steel Dynamics' return on equity of 19.82% beat Commercial Metals' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Steel Dynamics	9.80%	19.82%	11.57%
Commercial Metals	1.70%	9.88%	6.16%

Which has higher valuation and earnings, STLD or CMC?

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
Steel Dynamics	$18.80B	1.02	$2.45B	$11.05	11.39
Commercial Metals	$7.93B	0.73	$485.49M	$1.11	45.61

Do analysts recommend STLD or CMC?

Steel Dynamics currently has a consensus price target of $140.88, suggesting a potential upside of 11.96%. Commercial Metals has a consensus price target of $63.83, suggesting a potential upside of 26.08%. Given Commercial Metals' stronger consensus rating and higher possible upside, analysts plainly believe Commercial Metals is more favorable than Steel Dynamics.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Steel Dynamics	0 Sell rating(s)	6 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.33
Commercial Metals	0 Sell rating(s)	5 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.38

Which has more volatility & risk, STLD or CMC?

Steel Dynamics has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Commercial Metals has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Does the MarketBeat Community believe in STLD or CMC?

Steel Dynamics received 502 more outperform votes than Commercial Metals when rated by MarketBeat users. Likewise, 67.61% of users gave Steel Dynamics an outperform vote while only 53.75% of users gave Commercial Metals an outperform vote.

Company	Underperform	Outperform
Steel Dynamics	Outperform Votes 839 67.61%	Underperform Votes 402 32.39%
Commercial Metals	Outperform Votes 337 53.75%	Underperform Votes 290 46.25%

Summary

Steel Dynamics beats Commercial Metals on 15 of the 20 factors compared between the two stocks.