Reviewing Metallus (NYSE:MTUS) & Commercial Metals (NYSE:CMC)

Metallus (NYSE:MTUS) and Commercial Metals (NYSE:CMC) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Metallus and Commercial Metals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metallus	0	0	0	0	N/A
Commercial Metals	0	2	1	0	2.33

Commercial Metals has a consensus target price of $57.67, suggesting a potential upside of 4.45%. Given Commercial Metals’ higher probable upside, analysts plainly believe Commercial Metals is more favorable than Metallus.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metallus	$1.36 billion	0.68	$69.40 million	$1.46	14.54
Commercial Metals	$8.41 billion	0.76	$859.76 million	$5.76	9.59

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Metallus	5.09%	12.54%	7.79%
Commercial Metals	8.09%	17.72%	11.09%

Volatility and Risk

Metallus has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500. Comparatively, Commercial Metals has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Institutional and Insider Ownership

77.6% of Metallus shares are owned by institutional investors. Comparatively, 86.9% of Commercial Metals shares are owned by institutional investors. 3.7% of Metallus shares are owned by insiders. Comparatively, 1.0% of Commercial Metals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Commercial Metals beats Metallus on 10 of the 13 factors compared between the two stocks.

About Metallus

Metallus Inc. manufactures and sells alloy steel, and carbon and micro-alloy steel products in the United States and internationally. The company offers special bar quality (SBQ) bars, seamless mechanical tubes, precision steel components, and billets that are used in gears, hubs, axles, crankshafts and motor shafts, oil country drill pipes, bits and collars, bearing races and rolling elements, bushings, fuel injectors, wind energy shafts, anti-friction bearings, artillery and mortar bodies, and other applications. It also provides custom-make precision steel components. It offers its products and services to the automotive, energy, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. The company was formerly known as TimkenSteel Corporation and changed its name to Metallus Inc. in February 2024. Metallus Inc. was founded in 1899 and is headquartered in Canton, Ohio.

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.