Reliance Steel & Aluminum (NYSE: RS) is one of 29 publicly-traded companies in the “METALS FABRICATING” industry, but how does it compare to its rivals? We will compare Reliance Steel & Aluminum to similar businesses based on the strength of its analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Institutional & Insider Ownership
82.7% of Reliance Steel & Aluminum shares are owned by institutional investors. Comparatively, 55.4% of shares of all “METALS FABRICATING” companies are owned by institutional investors. 3.7% of Reliance Steel & Aluminum shares are owned by company insiders. Comparatively, 11.1% of shares of all “METALS FABRICATING” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent recommendations for Reliance Steel & Aluminum and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Reliance Steel & Aluminum||0||3||7||0||2.70|
|Reliance Steel & Aluminum Competitors||170||689||768||25||2.39|
Reliance Steel & Aluminum presently has a consensus target price of $89.17, indicating a potential upside of 7.96%. As a group, “METALS FABRICATING” companies have a potential upside of 16.84%. Given Reliance Steel & Aluminum’s rivals higher probable upside, analysts clearly believe Reliance Steel & Aluminum has less favorable growth aspects than its rivals.
Earnings & Valuation
This table compares Reliance Steel & Aluminum and its rivals revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Reliance Steel & Aluminum||$9.72 billion||$613.40 million||9.91|
|Reliance Steel & Aluminum Competitors||$4.25 billion||$225.60 million||13.46|
Reliance Steel & Aluminum has higher revenue and earnings than its rivals. Reliance Steel & Aluminum is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Reliance Steel & Aluminum pays an annual dividend of $2.00 per share and has a dividend yield of 2.4%. Reliance Steel & Aluminum pays out 24.0% of its earnings in the form of a dividend. As a group, “METALS FABRICATING” companies pay a dividend yield of 2.3% and pay out 26.1% of their earnings in the form of a dividend. Reliance Steel & Aluminum has raised its dividend for 7 consecutive years. Reliance Steel & Aluminum is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
This table compares Reliance Steel & Aluminum and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Reliance Steel & Aluminum||6.31%||9.00%||5.14%|
|Reliance Steel & Aluminum Competitors||-96.19%||7.51%||2.48%|
Volatility & Risk
Reliance Steel & Aluminum has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Reliance Steel & Aluminum’s rivals have a beta of 0.87, indicating that their average share price is 13% less volatile than the S&P 500.
Reliance Steel & Aluminum beats its rivals on 11 of the 15 factors compared.
About Reliance Steel & Aluminum
Reliance Steel & Aluminum Co. operates as a metals service center company in the United States and internationally. The company provides steel, aluminum, stainless, and specialty metals and related processing services to customers in various industries, such as infrastructure and energy; fabricates steel and aluminum products; and provides various precision fabrication services, including laser cutting, shearing, computer numerated control (CNC) punching, and CNC forming and rolling, as well as welding, assembly, painting, inventory management, and engineering expertise. It also manufactures metal parts that have applications in various end markets, including industrial machinery, automotive, aerospace, sugar products, and consumer electronics manufacturers. In addition, it distributes and processes carbon, alloy and stainless steel pipe, tubing, and bar products. The company sells directly to large original equipment manufacturer customers, as well as to small machine shops and fabricators. Reliance Steel & Aluminum Co. was founded in 1939 and is headquartered in Los Angeles, California.
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