Northwest Pipe (NWPX) versus Commercial Metals (CMC) Head to Head Analysis

Northwest Pipe (NASDAQ: NWPX) and Commercial Metals (NYSE:CMC) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Valuation and Earnings

This table compares Northwest Pipe and Commercial Metals’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Northwest Pipe $138.62 million 1.21 -$4.17 million $0.06 289.50
Commercial Metals $4.82 billion 0.43 $306.06 million $0.65 27.78

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Northwest Pipe and Commercial Metals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northwest Pipe 0 1 0 0 2.00
Commercial Metals 2 3 3 0 2.13

Northwest Pipe currently has a consensus price target of $9.00, suggesting a potential downside of 48.19%. Commercial Metals has a consensus price target of $20.63, suggesting a potential upside of 14.20%. Given Commercial Metals’ stronger consensus rating and higher possible upside, analysts plainly believe Commercial Metals is more favorable than Northwest Pipe.

Risk & Volatility

Northwest Pipe has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Commercial Metals has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500.

Profitability

This table compares Northwest Pipe and Commercial Metals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northwest Pipe 0.45% -1.90% -1.65%
Commercial Metals 1.57% 7.84% 3.42%

Insider & Institutional Ownership

83.5% of Northwest Pipe shares are owned by institutional investors. Comparatively, 90.6% of Commercial Metals shares are owned by institutional investors. 2.0% of Northwest Pipe shares are owned by insiders. Comparatively, 1.3% of Commercial Metals shares are owned 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 $0.48 per share and has a dividend yield of 2.7%. Northwest Pipe does not pay a dividend. Commercial Metals pays out 73.8% of its earnings in the form of a dividend.

Summary

Commercial Metals beats Northwest Pipe on 11 of the 15 factors compared between the two stocks.

Northwest Pipe Company Profile

Northwest Pipe Company is a manufacturer of engineered steel pipe water systems. The Company operates through two segments. The Water Transmission segment produces steel pipeline systems for use in drinking water infrastructure, and has approximately eight manufacturing facilities, located in Portland, Oregon; Denver, Colorado; Adelanto, California; Parkersburg, West Virginia; Saginaw, Texas; St. Louis, Missouri; Salt Lake City, Utah, and Monterrey, Mexico. The Tubular Products segment produces steel line pipe products for energy applications, and has a manufacturing facility located in Atchison, Kansas. The Company, through Water Transmission Group, produces engineered welded steel pipe products for use in water transmission applications. It also manufactures smaller diameter electric resistance welded (ERW) steel pipe through its Tubular Products Group. The Company’s solutions-based products are used in water transmission, plant piping, tunnels and river crossings applications.

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 Northwest Pipe Company Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Northwest Pipe Company and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply