Commercial Metals (CMC) Competitors

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

Which has stronger earnings and valuation, 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	$17.54B	1.01	$1.54B	$9.80	12.03
Commercial Metals	$7.74B	0.61	$485.49M	$0.60	70.03

Does the MarketBeat Community prefer STLD or CMC?

Steel Dynamics received 507 more outperform votes than Commercial Metals when rated by MarketBeat users. Likewise, 67.30% of users gave Steel Dynamics an outperform vote while only 53.41% of users gave Commercial Metals an outperform vote.

Company	Underperform	Outperform
Steel Dynamics	Outperform Votes 844 67.30%	Underperform Votes 410 32.70%
Commercial Metals	Outperform Votes 337 53.41%	Underperform Votes 294 46.59%

Do analysts prefer STLD or CMC?

Steel Dynamics currently has a consensus target price of $149.67, indicating a potential upside of 27.00%. Commercial Metals has a consensus target price of $60.33, indicating a potential upside of 43.58%. Given Commercial Metals' higher possible upside, analysts clearly 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)	3 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.73
Commercial Metals	0 Sell rating(s)	5 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.38

Does the media refer more to STLD or CMC?

In the previous week, Steel Dynamics had 21 more articles in the media than Commercial Metals. MarketBeat recorded 33 mentions for Steel Dynamics and 12 mentions for Commercial Metals. Steel Dynamics' average media sentiment score of 1.46 beat Commercial Metals' score of 1.22 indicating that Steel Dynamics is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Steel Dynamics	26 Very Positive mention(s)	5 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	1 Very Negative mention(s)	Positive
Commercial Metals	9 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk and volatility, STLD or CMC?

Steel Dynamics has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Commercial Metals has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Is STLD or CMC more profitable?

Steel Dynamics has a net margin of 8.76% compared to Commercial Metals' net margin of 1.70%. Steel Dynamics' return on equity of 17.32% beat Commercial Metals' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Steel Dynamics	8.76%	17.32%	10.13%
Commercial Metals	1.70%	9.88%	6.16%

Is STLD or CMC a better dividend stock?

Steel Dynamics pays an annual dividend of $2.00 per share and has a dividend yield of 1.7%. Commercial Metals pays an annual dividend of $0.72 per share and has a dividend yield of 1.7%. Steel Dynamics pays out 20.4% of its earnings in the form of a dividend. Commercial Metals pays out 120.0% 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 has increased its dividend for 13 consecutive years.

Do institutionals & insiders hold more shares of 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. 6.3% 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, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Steel Dynamics beats Commercial Metals on 17 of the 21 factors compared between the two stocks.