ZK International Group (NASDAQ:ZKIN) & Commercial Metals (NYSE:CMC) Critical Analysis

Commercial Metals (NYSE:CMC) and ZK International Group (NASDAQ:ZKIN) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Commercial Metals	5.46%	11.43%	6.31%
ZK International Group	N/A	N/A	N/A

Institutional and Insider Ownership

86.9% of Commercial Metals shares are owned by institutional investors. Comparatively, 0.3% of ZK International Group shares are owned by institutional investors. 0.6% of Commercial Metals shares are owned by insiders. Comparatively, 29.8% of ZK International Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Commercial Metals has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, ZK International Group has a beta of 2.76, meaning that its share price is 176% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Commercial Metals and ZK International Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commercial Metals	0	4	8	0	2.67
ZK International Group	1	0	0	0	1.00

Commercial Metals presently has a consensus price target of $72.70, indicating a potential downside of 5.39%. Given Commercial Metals’ stronger consensus rating and higher possible upside, research analysts clearly believe Commercial Metals is more favorable than ZK International Group.

Earnings & Valuation

This table compares Commercial Metals and ZK International Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commercial Metals	$7.80 billion	1.09	$84.66 million	$3.88	19.81
ZK International Group	$71.24 million	0.12	-$3.98 million	N/A	N/A

Commercial Metals has higher revenue and earnings than ZK International Group.

Summary

Commercial Metals beats ZK International Group on 10 of the 12 factors compared between the two stocks.

About Commercial Metals

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 ZK International Group

ZK International Group Co., Ltd., through its subsidiaries, engages in the designing, producing, and selling double-press thin-walled stainless steel, carbon steel, and single-press tubes and fittings in the People's Republic of China. It offers carbon and stainless steel strips; carbon and stainless steel pipes; light gauge stainless steel pipes; pipe connections and fittings; and couplings, unions, adapters, caps, plug pipes, elbows, three-way fittings, tees, cross, side-inlet elbows, wyes, reducers, bushings, pipe fasteners, and pipe flanges. The company also provides stainless steel band, copper strip, valve, light industry machinery and equipment, and other stainless steel products. Its products are used in various applications, including water and gas transmission within urban infrastructural development, residential housing development, food and beverage production, oil and gas exploitation, and agricultural irrigation. The company also exports its products to Europe, Africa, and Southeast Asia. ZK International Group Co., Ltd. was incorporated in 2015 and is based in Wenzhou, the People's Republic of China.