Commercial Metals Company (CMC) vs Ryerson Holding Corporation (RYZ)

Commercial Metals Company and Ryerson Holding Corporation are both Metal Fabrication companies. Commercial Metals Company is the larger, with a market value of $7.2B against $1.4B — 5.2× the size. Ryerson Holding Corporation has negative trailing earnings, so its P/E is not meaningful; Commercial Metals Company trades at 11.0×. Ryerson Holding Corporation grew revenue faster over the last twelve months: 31.5% against 20.5%. Commercial Metals Company has the higher net margin (6.98% vs −0.56%) and the higher return on invested capital (7.45% vs 0.53%). Both pay a dividend; Ryerson Holding Corporation yields more (1.37% vs 1.17%). Across the 21 metrics below, Commercial Metals Company leads on 16 and Ryerson Holding Corporation on 5.

Valuation

Metric CMC RYZ Metal Fabrication median
P/E 10.97 n/m 17.49
P/S 0.76 0.24 1.08
P/B 1.53 1.10 1.61
Price to free cash flow 14.65 n/m 20.17
EV/EBITDA 8.36 20.34 17.12
EV/Sales 1.04 0.40 1.92
Earnings yield 9.11% (4.48%) 2.35%
Free cash flow yield 6.83% (8.61%) 0.96%

Profitability

Metric CMC RYZ Metal Fabrication median
Gross margin 18.65% 17.34% 21.08%
Operating margin 9.26% 0.32% 5.14%
Net margin 6.98% (0.56%) 4.70%
Free cash flow margin 5.22% (2.10%) 1.45%
Return on equity 14.75% (3.08%) 0.00%
Return on assets 7.53% (1.03%) 1.56%
Return on invested capital 7.45% 0.53% 2.19%

Growth

Metric CMC RYZ Metal Fabrication median
Revenue growth (TTM) 20.46% 31.54% 9.93%
EPS growth (last fiscal year) 692.28% (576.92%) 37.36%
Revenue growth, 5-year CAGR 6.90% 5.69% 6.12%
Net income growth, 5-year CAGR 9.70% 0.00% 0.00%

Health

Metric CMC RYZ Metal Fabrication median
Debt to equity 0.72 0.74 0.30
Current ratio 2.34 2.21 2.08
Net debt to EBITDA 2.05 8.90 1.67

Dividend

Metric CMC RYZ Metal Fabrication median
Dividend yield 1.17% 1.37% 1.08%
Payout ratio 0.13 — 0.14

Size

Metric CMC RYZ Metal Fabrication median
Market cap 7.23b 1.39b 982.18m

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