Ryerson Holding Corporation (NYSE: RYI) and Reliance Steel & Aluminum Co. (NYSE:RS) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Earnings & Valuation
This table compares Ryerson Holding Corporation and Reliance Steel & Aluminum Co.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ryerson Holding Corporation||$3.11 billion||0.10||$155.90 million||$0.42||18.93|
|Reliance Steel & Aluminum Co.||$9.14 billion||0.55||$853.70 million||$4.44||15.61|
Reliance Steel & Aluminum Co. pays an annual dividend of $1.80 per share and has a dividend yield of 2.6%. Ryerson Holding Corporation does not pay a dividend. Reliance Steel & Aluminum Co. pays out 40.5% of its earnings in the form of a dividend. Ryerson Holding Corporation has increased its dividend for 6 consecutive years.
Volatility and Risk
Ryerson Holding Corporation has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500. Comparatively, Reliance Steel & Aluminum Co. has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.
Institutional and Insider Ownership
39.7% of Ryerson Holding Corporation shares are held by institutional investors. Comparatively, 83.7% of Reliance Steel & Aluminum Co. shares are held by institutional investors. 0.8% of Ryerson Holding Corporation shares are held by insiders. Comparatively, 3.7% of Reliance Steel & Aluminum Co. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Ryerson Holding Corporation and Reliance Steel & Aluminum Co.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ryerson Holding Corporation||0.48%||-53.49%||1.09%|
|Reliance Steel & Aluminum Co.||3.57%||8.67%||4.82%|
This is a summary of current recommendations and price targets for Ryerson Holding Corporation and Reliance Steel & Aluminum Co., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ryerson Holding Corporation||0||2||2||0||2.50|
|Reliance Steel & Aluminum Co.||0||3||6||0||2.67|
Ryerson Holding Corporation currently has a consensus target price of $15.25, suggesting a potential upside of 91.82%. Reliance Steel & Aluminum Co. has a consensus target price of $81.17, suggesting a potential upside of 17.11%. Given Ryerson Holding Corporation’s higher possible upside, research analysts clearly believe Ryerson Holding Corporation is more favorable than Reliance Steel & Aluminum Co..
Reliance Steel & Aluminum Co. beats Ryerson Holding Corporation on 12 of the 17 factors compared between the two stocks.
About Ryerson Holding Corporation
Ryerson Holding Corporation is a service center company for carbon and stainless steel, as well as aluminum. The Company operates through metal service centers segment. In addition to providing a range of flat and long metals products, it offers various value-added processing and fabrication services, such as sawing, slitting, blanking, cutting to length, leveling, flame cutting, laser cutting, edge trimming, edge rolling, roll forming, tube manufacturing, polishing, shearing, forming, stamping, punching, rolling shell plate to radius and beveling to process materials to a specified thickness, length, width, shape and surface quality pursuant to specific customer orders. Its services include just-in-time inventory programs, production of kits containing multiple products for ease of assembly by the customer, consignment arrangements and the placement of its employees at a customer’s site for inventory management, and production and technical assistance.
About Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co. is a metals service center company in North America (the United States and Canada). As of December 31, 2016, the Company’s network of metals service centers operated over 300 locations in 39 states in the United States and in 12 other countries (Australia, Belgium, Canada, China, France, Malaysia, Mexico, Singapore, South Korea, Turkey, the United Arab Emirates and the United Kingdom). As of December 31, 2016, it provided metals processing services and distributes a range of more than 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium and specialty steel products in a range of industries. Its various metals service centers process and distribute only specialty metals. It delivers a range of products from facilities located across the United States and Canada. It provides a range of processing services for its customers’ and delivers products to fabricators, manufacturers and other end users.
What are top analysts saying about Ryerson Holding Corporation? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Ryerson Holding Corporation and related companies.