Cleveland-CliffsCMC

Cleveland-Cliffs vs CMC

Cleveland-Cliffs vs CMC compares two major players in the metals sector, examining how their business models relate to financial performance and the market context in which they operate. This page off...

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Published: July 31, 2025

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U.S. Protectionism: American Advantage

This carefully selected group of stocks represents companies set to benefit from the new 35% tariff on Canadian imports. Our professional analysts have identified these U.S. businesses as being uniquely positioned to capture greater market share and increase their pricing power as foreign competition becomes more expensive.

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Trump's Tariff Ripple Effect

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These carefully selected stocks represent US companies likely to benefit from expanded tariffs on foreign imports. Our professional analysts have identified domestic manufacturers and steel producers positioned to gain market share as their international competitors face higher costs.

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Investment Analysis

Pros

  • Cleveland-Cliffs is the last major American-based integrated steel producer with strong North American market presence.
  • The company offers a diverse product portfolio including flat-rolled steel, stainless steel, steel plates, and mining raw materials.
  • Recent strategic acquisitions like Stelco strengthen Cleveland-Cliffs' vertical integration and market position.

Considerations

  • Cleveland-Cliffs reported a net loss of $1.68 billion in the trailing twelve months, reflecting profitability challenges.
  • Its return on equity is negative at about -25.83%, indicating current financial performance below historical averages.
  • The company carries high debt levels around $7.73 billion, considerably higher than peers, which increases financial risk.
CMC

CMC

CMC

Pros

  • Commercial Metals Company (CMC) has a stronger forward price-to-earnings ratio indicating better expected earnings relative to price.
  • CMC maintains significantly lower debt levels at about $1.34 billion, supporting a more robust balance sheet and liquidity.
  • The company exhibits a more stable beta of 1.29, suggesting lower stock price volatility compared to Cleveland-Cliffs.

Considerations

  • CMC’s market capitalization and revenue are substantially lower than Cleveland-Cliffs, limiting scale advantages.
  • Despite profitability, CMC's earnings and valuation metrics still point to periods of underperformance compared to industry standards.
  • The company is less diversified, focusing primarily on steel products, which may limit growth drivers relative to integrated producers.

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