Reliance Steel & Aluminum (NYSE: RS) is one of 29 publicly-traded companies in the “METALS FABRICATING” industry, but how does it weigh in compared to its peers? We will compare Reliance Steel & Aluminum to related companies based on the strength of its institutional ownership, valuation, earnings, analyst recommendations, dividends, risk and profitability.
Institutional and 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. 3.2% 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Reliance Steel & Aluminum and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Reliance Steel & Aluminum||0||3||7||0||2.70|
|Reliance Steel & Aluminum Competitors||169||686||765||25||2.39|
Reliance Steel & Aluminum presently has a consensus price target of $89.17, suggesting a potential upside of 1.85%. As a group, “METALS FABRICATING” companies have a potential upside of 10.25%. Given Reliance Steel & Aluminum’s peers higher possible upside, analysts clearly believe Reliance Steel & Aluminum has less favorable growth aspects than its peers.
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 24.0% of its earnings in the form of a dividend. As a group, “METALS FABRICATING” companies pay a dividend yield of 2.2% 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 peers, given its higher yield and lower payout ratio.
Volatility & Risk
Reliance Steel & Aluminum has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Reliance Steel & Aluminum’s peers have a beta of 0.87, indicating that their average stock price is 13% less volatile than the S&P 500.
Valuation and Earnings
This table compares Reliance Steel & Aluminum and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Reliance Steel & Aluminum||$9.72 billion||$613.40 million||10.51|
|Reliance Steel & Aluminum Competitors||$4.25 billion||$225.60 million||11.80|
Reliance Steel & Aluminum has higher revenue and earnings than its peers. Reliance Steel & Aluminum is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This table compares Reliance Steel & Aluminum and its peers’ 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||-96.45%||6.76%||2.08%|
Reliance Steel & Aluminum beats its peers on 11 of the 15 factors compared.
Reliance Steel & Aluminum Company Profile
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.
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