Dmc Global (BOOM) versus Commercial Metals (CMC) Head to Head Analysis

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

Profitability

This table compares Dmc Global and Commercial Metals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dmc Global -10.69% -1.20% -0.81%
Commercial Metals 1.53% 8.08% 3.69%

Dividends

Dmc Global pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Commercial Metals pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. Dmc Global pays out -6.0% 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.

Earnings & Valuation

This table compares Dmc Global and Commercial Metals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dmc Global $158.57 million 2.28 -$6.50 million ($1.33) -18.42
Commercial Metals $4.57 billion 0.62 $46.33 million $0.66 37.09

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

Risk & Volatility

Dmc Global has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Commercial Metals has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Insider & Institutional Ownership

86.4% of Dmc Global shares are held by institutional investors. Comparatively, 88.6% of Commercial Metals shares are held by institutional investors. 5.1% of Dmc Global 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 hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dmc Global 0 0 1 0 3.00
Commercial Metals 2 0 5 0 2.43

Dmc Global currently has a consensus price target of $22.00, indicating a potential downside of 10.20%. Commercial Metals has a consensus price target of $21.57, indicating a potential downside of 11.88%. Given Dmc Global’s stronger consensus rating and higher probable upside, equities analysts clearly believe Dmc Global is more favorable than Commercial Metals.

Summary

Commercial Metals beats Dmc Global on 11 of the 16 factors compared between the two stocks.

About Dmc Global

DMC Global Inc., formerly Dynamic Materials Corporation, is a diversified technology company. The Company operates a family of technical product and process businesses serving the energy, industrial and infrastructure markets. The Company’s businesses operate through an international network of manufacturing, distribution and sales facilities. The Company’s segments are NobelClad and DynaEnergetics. The NobelClad segment is engaged in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. It owns explosive metalworking and metallic processes, and registered trademarks, including Detaclad, Detacouple, EFTEK, ETJ 2000 and NOBELCLAD.

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.

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

Latest News

Leave a Reply