CMC vs. X, CRS, STLD, TX, MT, WFG, ICL, OLN, ATI, and AGI
Should you be buying Commercial Metals stock or one of its competitors? The main competitors of Commercial Metals include United States Steel (X), Carpenter Technology (CRS), Steel Dynamics (STLD), Ternium (TX), ArcelorMittal (MT), West Fraser Timber (WFG), ICL Group (ICL), Olin (OLN), ATI (ATI), and Alamos Gold (AGI). These companies are all part of the "basic materials" sector.
United States Steel (NYSE:X) and Commercial Metals (NYSE:CMC) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, community ranking, media sentiment, profitability, risk, dividends, earnings and institutional ownership.
United States Steel has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, Commercial Metals has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.
United States Steel received 579 more outperform votes than Commercial Metals when rated by MarketBeat users. Likewise, 55.86% of users gave United States Steel an outperform vote while only 54.17% of users gave Commercial Metals an outperform vote.
In the previous week, United States Steel had 5 more articles in the media than Commercial Metals. MarketBeat recorded 11 mentions for United States Steel and 6 mentions for Commercial Metals. United States Steel's average media sentiment score of 0.83 beat Commercial Metals' score of 0.72 indicating that Commercial Metals is being referred to more favorably in the news media.
Commercial Metals has a net margin of 8.09% compared to Commercial Metals' net margin of 4.96%. United States Steel's return on equity of 17.72% beat Commercial Metals' return on equity.
81.9% of United States Steel shares are held by institutional investors. Comparatively, 86.9% of Commercial Metals shares are held by institutional investors. 1.0% of United States Steel shares are held by insiders. Comparatively, 1.0% of Commercial Metals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
United States Steel currently has a consensus price target of $37.89, suggesting a potential upside of 1.25%. Commercial Metals has a consensus price target of $57.67, suggesting a potential upside of 7.83%. Given United States Steel's stronger consensus rating and higher probable upside, analysts plainly believe Commercial Metals is more favorable than United States Steel.
United States Steel has higher revenue and earnings than Commercial Metals. Commercial Metals is trading at a lower price-to-earnings ratio than United States Steel, indicating that it is currently the more affordable of the two stocks.
United States Steel pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Commercial Metals pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. United States Steel pays out 5.7% 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. Commercial Metals has raised its dividend for 1 consecutive years. Commercial Metals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Commercial Metals beats United States Steel on 12 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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