CMC vs HCI Which Performs Better?

CMC and HCI stocks are two companies that specialize in different industries but are often compared due to their strong presence and performance in the stock market. CMC focuses on the manufacturing and distribution of steel and metal products, while HCI is a leading provider of insurance and financial services. Investors often analyze the performance of these two stocks to evaluate market trends and make informed investment decisions. Both companies have shown resilience and growth, making them popular choices among investors.

CMC or HCI?

When comparing CMC and HCI, 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 HCI.

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 HCI has a dividend yield of 1.4%. 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, HCI reports a 5-year dividend growth of 1.64% year and a payout ratio of 11.60%.

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 HCI's P/E ratio at 7.89. 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 HCI's P/B ratio is 2.52.

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 HCI's is 0.81%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CMC's ROE at 8.28% and HCI's ROE at 35.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥1510.00 for CMC and $112.76 for HCI. Over the past year, CMC's prices ranged from ¥1040.00 to ¥1528.00, with a yearly change of 46.92%. HCI's prices fluctuated between $81.35 and $126.50, with a yearly change of 55.50%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.