Head to Head Comparison: Commercial Metals (CMC) vs. United States Steel Corporation (X)
Commercial Metals (NYSE: CMC) and United States Steel Corporation (NYSE:X) are both mid-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Volatility and Risk
Commercial Metals has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, United States Steel Corporation has a beta of 2.96, suggesting that its stock price is 196% more volatile than the S&P 500.
Insider and Institutional Ownership
90.2% of Commercial Metals shares are owned by institutional investors. Comparatively, 64.7% of United States Steel Corporation shares are owned by institutional investors. 1.3% of Commercial Metals shares are owned by company insiders. Comparatively, 1.0% of United States Steel Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Commercial Metals and United States Steel Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United States Steel Corporation||1.05%||10.27%||2.67%|
Earnings & Valuation
This table compares Commercial Metals and United States Steel Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Commercial Metals||$4.57 billion||0.46||$46.33 million||$0.40||45.85|
|United States Steel Corporation||$10.26 billion||0.47||-$440.00 million||$0.67||40.72|
Commercial Metals has higher revenue, but lower earnings than United States Steel Corporation. United States Steel Corporation is trading at a lower price-to-earnings ratio than Commercial Metals, indicating that it is currently the more affordable of the two stocks.
Commercial Metals pays an annual dividend of $0.48 per share and has a dividend yield of 2.6%. United States Steel Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.7%. 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. United States Steel Corporation pays out 29.9% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for Commercial Metals and United States Steel Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United States Steel Corporation||3||6||8||0||2.29|
Commercial Metals presently has a consensus target price of $21.14, suggesting a potential upside of 15.28%. United States Steel Corporation has a consensus target price of $28.78, suggesting a potential upside of 5.50%. Given Commercial Metals’ higher probable upside, research analysts clearly believe Commercial Metals is more favorable than United States Steel Corporation.
United States Steel Corporation beats Commercial Metals on 9 of the 16 factors compared between the two stocks.
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.
About United States Steel Corporation
United States Steel Corporation is an integrated steel producer. The Company is engaged in producing flat-rolled and tubular products with production operations in North America and Europe. The Company operates through three segments: Flat-Rolled Products (Flat-Rolled), U. S. Steel Europe (USSE) and Tubular Products (Tubular). The Flat-Rolled segment includes the operating results of its integrated steel plants and equity investees in the United States involved in the production of slabs, rounds, strip mill plates, sheets and tin mill products, as well as all iron ore and coke production facilities in the United States. The USSE segment includes the operating results of U. S. Steel Kosice (USSK) and its integrated steel plant and coke production facilities in Slovakia. The Tubular segment includes the operating results of its tubular production facilities, primarily in the United States and equity investees in the United States and Brazil.
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