Commercial Metals (CMC) Competitors

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

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 1.4%. Steel Dynamics pays an annual dividend of $1.84 per share and has a dividend yield of 1.6%. Commercial Metals pays out 17.4% of its earnings in the form of a dividend. Steel Dynamics pays out 16.7% 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.

Does the MarketBeat Community favor CMC or STLD?

Steel Dynamics received 502 more outperform votes than Commercial Metals when rated by MarketBeat users. Likewise, 67.69% of users gave Steel Dynamics an outperform vote while only 53.93% of users gave Commercial Metals an outperform vote.

Company	Underperform	Outperform
Commercial Metals	Outperform Votes 336 53.93%	Underperform Votes 287 46.07%
Steel Dynamics	Outperform Votes 838 67.69%	Underperform Votes 400 32.31%

Does the media favor CMC or STLD?

In the previous week, Steel Dynamics had 24 more articles in the media than Commercial Metals. MarketBeat recorded 33 mentions for Steel Dynamics and 9 mentions for Commercial Metals. Commercial Metals' average media sentiment score of 0.99 beat Steel Dynamics' score of 0.62 indicating that Commercial Metals is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Commercial Metals	5 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Steel Dynamics	10 Very Positive mention(s)	13 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is CMC or STLD more profitable?

Steel Dynamics has a net margin of 9.80% compared to Commercial Metals' net margin of 6.13%. Steel Dynamics' return on equity of 19.82% beat Commercial Metals' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Commercial Metals	6.13%	12.20%	7.72%
Steel Dynamics	9.80%	19.82%	11.57%

Which has preferable earnings & valuation, 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	0.72	$485.49M	$4.14	12.14
Steel Dynamics	$17.90B	0.98	$2.45B	$11.05	10.47

Do insiders & institutionals believe in CMC or STLD?

86.9% of Commercial Metals shares are held by institutional investors. Comparatively, 82.4% of Steel Dynamics shares are held by institutional investors. 0.5% of Commercial Metals shares are held by insiders. Comparatively, 6.0% of Steel Dynamics shares are held by 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.

Do analysts rate CMC or STLD?

Commercial Metals presently has a consensus target price of $65.33, suggesting a potential upside of 29.96%. Steel Dynamics has a consensus target price of $144.25, suggesting a potential upside of 24.69%. Given Commercial Metals' stronger consensus rating and higher possible upside, equities research 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	1 Sell rating(s)	3 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.29
Steel Dynamics	0 Sell rating(s)	6 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.25

Which has more risk and volatility, CMC or STLD?

Commercial Metals has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Steel Dynamics has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Summary

Steel Dynamics beats Commercial Metals on 15 of the 21 factors compared between the two stocks.