Contrasting Synalloy (SYNL) and Commercial Metals (CMC)
Synalloy (NASDAQ: SYNL) and Commercial Metals (NYSE:CMC) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.
This is a breakdown of current ratings for Synalloy and Commercial Metals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares Synalloy and Commercial Metals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Synalloy has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, Commercial Metals has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Insider and Institutional Ownership
48.2% of Synalloy shares are held by institutional investors. Comparatively, 88.6% of Commercial Metals shares are held by institutional investors. 10.6% of Synalloy shares are held by company insiders. Comparatively, 1.5% of Commercial Metals shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Synalloy and Commercial Metals’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Synalloy||$138.57 million||0.87||-$7.09 million||($0.13)||-105.77|
|Commercial Metals||$4.57 billion||0.64||$46.33 million||$0.66||38.12|
Commercial Metals has higher revenue and earnings than Synalloy. Synalloy is trading at a lower price-to-earnings ratio than Commercial Metals, indicating that it is currently the more affordable of the two stocks.
Synalloy pays an annual dividend of $0.13 per share and has a dividend yield of 0.9%. Commercial Metals pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. Synalloy pays out -100.0% of its earnings in the form of a dividend. Commercial Metals pays out 72.7% 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.
Commercial Metals beats Synalloy on 12 of the 15 factors compared between the two stocks.
Synalloy Company Profile
Synalloy Corporation is a chemical manufacturing company. The Company operates through two segments: the Metals Segment and the Specialty Chemicals Segment. The Company’s Metals Segment comprises three subsidiaries: Synalloy Metals, Inc., which owns Bristol Metals, LLC (BRISMET), located in Bristol, Tennessee; Palmer of Texas Tanks, Inc. (Palmer), located in Andrews, Texas; and Specialty Pipe & Tube, Inc. (Specialty), located in Mineral Ridge, Ohio and Houston, Texas. The Company’s Metals Segment manufactures stainless steel, other alloy pipe, storage solutions and separation equipment. The Company’s Specialty Chemicals segment consists of the Company’s subsidiary, Manufacturers Soap and Chemical Company (MS&C). The Specialty Chemicals Segment manufactures lubricants, surfactants, reaction intermediaries, sulfated fats and oils, and chemical tolling manufacturing resources.
Commercial Metals Company Profile
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.
Receive News & Ratings for Synalloy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Synalloy and related companies with MarketBeat.com's FREE daily email newsletter.