Commercial Metals (NYSE:CMC) & Acerinox (OTCMKTS:ANIOY) Head-To-Head Review

Commercial Metals (NYSE:CMCGet Free Report) and Acerinox (OTCMKTS:ANIOYGet Free Report) are both mid-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Institutional and Insider Ownership

86.9% of Commercial Metals shares are held by institutional investors. 0.5% 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.

Dividends

Commercial Metals pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. Acerinox pays an annual dividend of $0.22 per share and has a dividend yield of 3.7%. Commercial Metals pays out 232.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Acerinox pays out 57.9% of its earnings in the form of a dividend. Commercial Metals has raised its dividend for 4 consecutive years. Acerinox is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Commercial Metals and Acerinox’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Commercial Metals 0.48% 7.45% 4.49%
Acerinox 1.59% 3.54% 1.41%

Volatility and Risk

Commercial Metals has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Acerinox has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Earnings and Valuation

This table compares Commercial Metals and Acerinox”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Commercial Metals $7.93 billion 0.75 $485.49 million $0.31 172.00
Acerinox $5.86 billion 0.51 $243.41 million $0.38 15.71

Commercial Metals has higher revenue and earnings than Acerinox. Acerinox is trading at a lower price-to-earnings ratio than Commercial Metals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Commercial Metals and Acerinox, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Commercial Metals 0 5 3 0 2.38
Acerinox 0 1 2 0 2.67

Commercial Metals currently has a consensus price target of $57.50, suggesting a potential upside of 7.84%. Given Commercial Metals’ higher probable upside, equities analysts plainly believe Commercial Metals is more favorable than Acerinox.

Summary

Commercial Metals beats Acerinox on 12 of the 17 factors compared between the two stocks.

About Commercial Metals

(Get Free Report)

Commercial Metals Company manufactures, recycles, and fabricates steel and metal products, and related materials and services in the United States, Poland, China, and internationally. It operates through two segments, North America and Europe. The company processes and sells ferrous and nonferrous scrap metals to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers, and other consumers. It also manufactures and sells finished long steel products, including reinforcing bar, merchant bar, light structural, and other special sections, as well as semi-finished billets for rerolling and forging applications. In addition, the company provides fabricated rebar used to reinforce concrete primarily in the construction of commercial and non-commercial buildings, hospitals, convention centers, industrial plants, power plants, highways, bridges, arenas, stadiums, and dams; sells and rents construction-related products and equipment to concrete installers and other businesses; and manufactures and sells strength bars for the truck trailer industry, special bar steels for the energy market, and armor plates for military vehicles. Further, it manufactures rebars, merchant bars, and wire rods; and sells fabricated rebars, wire meshes, fabricated meshes, assembled rebar cages, and other fabricated rebar by-products to fabricators, manufacturers, distributors, and construction companies. The company was founded in 1915 and is headquartered in Irving, Texas.

About Acerinox

(Get Free Report)

Acerinox, S.A., together with its subsidiaries, manufactures, process, and markets stainless steel products in Spain, the United States, Africa, Asia, Rest of Europe, and internationally. It operates through Stainless steel, and High-performance Alloys segments. The company offers flat products, including hot and cold rolled coils and sheets, strips, flat bars, and discs, as well as engraved coil and sheet, black coil, slabs, circles, billets, and plates. It provides long products, which include wire and hexagonal wire rods, peeled bars, hot and cold reinforcement bars, black bars, profiles, angles, and steel profiles, as well as stainless steel, color coated, and reinforcement wires. In additions, it offers stainless steel products, such as austenitic, ferritic, duplex, and martensitic. Acerinox, S.A. was incorporated in 1970 and is headquartered in Madrid, Spain.

Receive News & Ratings for Commercial Metals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Commercial Metals and related companies with MarketBeat.com's FREE daily email newsletter.