Commercial Metals (NYSE:CMC – Get Free Report) and Maanshan Iron & Steel (OTCMKTS:MAANF – Get Free Report) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.
Insider & Institutional Ownership
83.0% of Commercial Metals shares are owned by institutional investors. Comparatively, 3.2% of Maanshan Iron & Steel shares are owned by institutional investors. 1.2% of Commercial Metals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Commercial Metals and Maanshan Iron & Steel’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Commercial Metals | $8.91 billion | 0.74 | $1.22 billion | $8.09 | 6.95 |
| Maanshan Iron & Steel | N/A | N/A | N/A | $0.02 | 9.62 |
Profitability
This table compares Commercial Metals and Maanshan Iron & Steel’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Commercial Metals | 10.72% | 26.49% | 15.24% |
| Maanshan Iron & Steel | N/A | N/A | N/A |
Analyst Recommendations
This is a breakdown of recent recommendations for Commercial Metals and Maanshan Iron & Steel, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Commercial Metals | 0 | 3 | 3 | 0 | 2.50 |
| Maanshan Iron & Steel | 0 | 0 | 0 | 0 | N/A |
Commercial Metals currently has a consensus target price of $57.83, indicating a potential upside of 2.81%. Given Commercial Metals’ higher probable upside, equities research analysts clearly believe Commercial Metals is more favorable than Maanshan Iron & Steel.
Summary
Commercial Metals beats Maanshan Iron & Steel on 9 of the 10 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. 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 steel products 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 Maanshan Iron & Steel
Maanshan Iron & Steel Company Limited, together with its subsidiaries, manufactures and sells iron and steel products, and related by-products in Mainland China, Hong Kong, and internationally. The company offers steel plates, including hot and cold-rolled thin plates, galvanized plates, coil-coating plates, and medium plates; section steel products, such as H-shaped steel and medium-shaped steel; high-speed wire rod and hot-rolled reinforcing steel products; and train wheels and wheel rims. It also engages in the production and distribution of ferrous metallurgy, screw threaded steels, round and section steels, angle and deformed steels, wires, and rods; sale, import, and export of iron ore, iron ore fines, and scrap steel; metallurgy and extended processing of ferrous metals; production and sale of coke and coke chemical products and energy; production and distribution of metallic products; design, research and development, manufacture, maintenance, and sale of rail wheels, axles, wheel sets, bogies, and other rail equipment; trading of steel products and pig iron; and investment and trading businesses. The company was founded in 1953 and is headquartered in Maanshan, the People's Republic of China.
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