Analyzing Commercial Metals (CMC) & The Competition
Commercial Metals (NYSE: CMC) is one of 28 publicly-traded companies in the “Steel” industry, but how does it contrast to its rivals? We will compare Commercial Metals to similar companies based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.
This table compares Commercial Metals and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Commercial Metals Competitors||-1,550.91%||3.59%||2.20%|
Earnings and Valuation
This table compares Commercial Metals and its rivals top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Commercial Metals||$4.82 billion||$306.06 million||30.92|
|Commercial Metals Competitors||$7.78 billion||$1.01 billion||35.39|
Commercial Metals’ rivals have higher revenue and earnings than Commercial Metals. Commercial Metals is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Volatility and Risk
Commercial Metals has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Commercial Metals’ rivals have a beta of 1.37, suggesting that their average stock price is 37% more volatile than the S&P 500.
This is a breakdown of current recommendations for Commercial Metals and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Commercial Metals Competitors||289||834||945||29||2.34|
Commercial Metals presently has a consensus target price of $20.63, indicating a potential upside of 2.61%. As a group, “Steel” companies have a potential upside of 5.64%. Given Commercial Metals’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Commercial Metals has less favorable growth aspects than its rivals.
Commercial Metals pays an annual dividend of $0.48 per share and has a dividend yield of 2.4%. Commercial Metals pays out 73.8% of its earnings in the form of a dividend. As a group, “Steel” companies pay a dividend yield of 2.1% and pay out 60.2% of their earnings in the form of a dividend.
Insider and Institutional Ownership
90.6% of Commercial Metals shares are held by institutional investors. Comparatively, 52.1% of shares of all “Steel” companies are held by institutional investors. 1.3% of Commercial Metals shares are held by insiders. Comparatively, 12.1% of shares of all “Steel” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Commercial Metals rivals beat Commercial Metals on 10 of the 15 factors compared.
About Commercial Metals
Commercial Metals Company, together with its subsidiaries, manufactures, recycles and markets steel and metal products, related materials and services through a network. The Company’s Americas Recycling segment processes scrap metals for use as a raw material by manufacturers of new metal products. The Americas Mills segment consists of steel mills, commonly referred to as minimills that produce reinforcing bar (rebar), angles, flats and rounds. Its Americas Fabrication segment consists of its steel fabrication facilities that bend, weld, cut and fabricate steel, primarily rebar. Its International Mill segment consists of its mill, recycling and fabrication operations located in Poland. Its International Marketing and Distribution segment includes international operations for the sales, distribution and processing of primary and secondary metals, fabricated metals, semi-finished, long and flat steel products, and other industrial products.
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