Comparing Reliance Steel & Aluminum (RS) & Its Competitors

Reliance Steel & Aluminum (NYSE: RS) is one of 6 public companies in the “Metals service centers & offices” industry, but how does it contrast to its competitors? We will compare Reliance Steel & Aluminum to similar companies based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Profitability

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This table compares Reliance Steel & Aluminum and its competitors’ 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 2.99% -5.58% 2.64%

Analyst Recommendations

This is a summary of recent ratings and price targets for Reliance Steel & Aluminum and its competitors, 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 20 129 111 4 2.38

Reliance Steel & Aluminum presently has a consensus target price of $90.43, suggesting a potential upside of 4.10%. As a group, “Metals service centers & offices” companies have a potential downside of 2.61%. Given Reliance Steel & Aluminum’s stronger consensus rating and higher possible upside, analysts clearly believe Reliance Steel & Aluminum is more favorable than its competitors.

Dividends

Reliance Steel & Aluminum pays an annual dividend of $2.00 per share and has a dividend yield of 2.3%. Reliance Steel & Aluminum pays out 36.8% of its earnings in the form of a dividend. As a group, “Metals service centers & offices” companies pay a dividend yield of 1.7% and pay out 23.9% of their earnings in the form of a dividend. Reliance Steel & Aluminum has raised its dividend for 7 consecutive years.

Risk and Volatility

Reliance Steel & Aluminum has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Reliance Steel & Aluminum’s competitors have a beta of 1.51, meaning that their average share price is 51% more volatile than the S&P 500.

Earnings & Valuation

This table compares Reliance Steel & Aluminum and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Reliance Steel & Aluminum $9.72 billion $613.40 million 15.97
Reliance Steel & Aluminum Competitors $23.39 billion $1.03 billion 17.67

Reliance Steel & Aluminum’s competitors have higher revenue and earnings than Reliance Steel & Aluminum. Reliance Steel & Aluminum is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

82.7% of Reliance Steel & Aluminum shares are owned by institutional investors. Comparatively, 65.0% of shares of all “Metals service centers & offices” companies are owned by institutional investors. 3.7% of Reliance Steel & Aluminum shares are owned by company insiders. Comparatively, 9.6% of shares of all “Metals service centers & offices” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Reliance Steel & Aluminum beats its competitors on 8 of the 15 factors compared.

Reliance Steel & Aluminum Company Profile

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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