Commercial Metals Company (CMC) vs ESAB Corporation (ESAB)

Commercial Metals Company and ESAB Corporation are both Metal Fabrication companies. Commercial Metals Company is the larger, with a market value of $7.1B against $4.2B — 1.7× the size. Commercial Metals Company trades at the lower P/E: 12.3× against 25.7×. Commercial Metals Company grew revenue faster over the last twelve months: 15.2% against 9.65%. Commercial Metals Company has the higher net margin (6.72% vs 5.70%) and the higher return on invested capital (6.89% vs 4.75%). Both pay a dividend; Commercial Metals Company yields more (1.20% vs 0.24%). Across the 23 metrics below, Commercial Metals Company leads on 17 and ESAB Corporation on 6.

Valuation

Metric CMC ESAB Metal Fabrication median
P/E 12.26 25.67 17.15
P/S 0.82 1.46 1.14
P/B 1.61 1.82 1.71
Price to free cash flow 17.75 22.10 22.10
EV/EBITDA 8.65 14.06 17.60
EV/Sales 1.14 2.19 1.96
Earnings yield 8.15% 3.90% 2.28%
Free cash flow yield 5.63% 4.53% 0.92%

Profitability

Metric CMC ESAB Metal Fabrication median
Gross margin 18.56% 36.96% 21.08%
Operating margin 9.18% 12.07% 5.14%
Net margin 6.72% 5.70% 4.70%
Free cash flow margin 4.64% 6.62% 1.45%
Return on equity 13.79% 7.56% 0.00%
Return on assets 7.09% 3.11% 1.56%
Return on invested capital 6.89% 4.75% 2.19%

Growth

Metric CMC ESAB Metal Fabrication median
Revenue growth (TTM) 15.23% 9.65% 9.93%
EPS growth (last fiscal year) (82.13%) (14.85%) —
Revenue growth, 5-year CAGR 7.33% 7.83% 6.12%
Net income growth, 5-year CAGR (21.25%) 7.57% 0.00%

Health

Metric CMC ESAB Metal Fabrication median
Debt to equity 0.75 0.93 0.30
Current ratio 2.33 1.96 2.08
Net debt to EBITDA 0.39 2.11 1.02

Dividend

Metric CMC ESAB Metal Fabrication median
Dividend yield 1.20% 0.24% 1.69%
Payout ratio 0.08 0.06 0.06

Size

Metric CMC ESAB Metal Fabrication median
Market cap 7.10b 4.22b 896.96m

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