CMC vs CNC Which Is More Favorable?

CMC (Commercial Metals Company) and CNC (Centene Corporation) are both publicly traded companies listed on the stock exchange. CMC is a leading manufacturer and supplier of steel and metal products, while CNC is a healthcare company that provides services to government-sponsored programs such as Medicaid. Both stocks have performed well in recent years, but have different risk profiles and growth potentials. Investors should carefully consider their investment goals and risk tolerance before choosing between CMC and CNC stocks.

CMC or CNC?

When comparing CMC and CNC, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CMC and CNC.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CMC has a dividend yield of 2.91%, while CNC has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CMC reports a 5-year dividend growth of 1.09% year and a payout ratio of 0.00%. On the other hand, CNC reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CMC P/E ratio at 12.61 and CNC's P/E ratio at -244.12. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CMC P/B ratio is 1.02 while CNC's P/B ratio is -7.61.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CMC has seen a 5-year revenue growth of 0.08%, while CNC's is 143.36%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CMC's ROE at 8.28% and CNC's ROE at 3.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1501.00 for CMC and HK$0.76 for CNC. Over the past year, CMC's prices ranged from ¥1040.00 to ¥1514.00, with a yearly change of 45.58%. CNC's prices fluctuated between HK$0.34 and HK$2.10, with a yearly change of 526.87%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.