WallStSmart

Friedman Industries Inc. Common Stock (FRD)vsReliance Steel & Aluminum Co (RS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Reliance Steel & Aluminum Co generates 2439% more annual revenue ($14.84B vs $584.35M). RS leads profitability with a 5.4% profit margin vs 2.7%. FRD trades at a lower P/E of 11.0x. RS earns a higher WallStSmart Score of 63/100 (C+).

FRD

Hold

49

out of 100

Grade: D+

Growth: 6.7Profit: 5.0Value: 7.7Quality: 7.5
Piotroski: 3/9Altman Z: 4.26

RS

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 5.5Value: 5.0Quality: 8.5
Piotroski: 3/9Altman Z: 4.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FRDUndervalued (+24.4%)

Margin of Safety

+24.4%

Fair Value

$27.81

Current Price

$24.40

$3.41 discount

UndervaluedFair: $27.81Overvalued

Intrinsic value data unavailable for RS.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRD4 strengths · Avg: 10.0/10
P/E RatioValuation
11.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
78.6%10/10

Revenue surging 78.6% year-over-year

Altman Z-ScoreHealth
4.2610/10

Safe zone — low bankruptcy risk

RS5 strengths · Avg: 8.6/10
Altman Z-ScoreHealth
4.4110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.5%8/10

15.5% revenue growth

EPS GrowthGrowth
36.4%8/10

Earnings expanding 36.4% YoY

Areas to Watch

FRD4 concerns · Avg: 3.0/10
Market CapQuality
$173.54M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
2.3%3/10

Operating margin of 2.3%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

RS4 concerns · Avg: 3.5/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

P/E RatioValuation
26.9x4/10

Moderate valuation

Profit MarginProfitability
5.4%3/10

5.4% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : FRD

The strongest argument for FRD centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 78.6% demonstrates continued momentum.

Bull Case : RS

The strongest argument for RS centers on Altman Z-Score, Debt/Equity, Price/Book. Revenue growth of 15.5% demonstrates continued momentum.

Bear Case : FRD

The primary concerns for FRD are Market Cap, Profit Margin, Operating Margin. Thin 2.7% margins leave little buffer for downturns.

Bear Case : RS

The primary concerns for RS are PEG Ratio, P/E Ratio, Profit Margin.

Key Dynamics to Monitor

FRD profiles as a hypergrowth stock while RS is a growth play — different risk/reward profiles.

FRD carries more volatility with a beta of 1.63 — expect wider price swings.

FRD is growing revenue faster at 78.6% — sustainability is the question.

RS generates stronger free cash flow (87M), providing more financial flexibility.

Bottom Line

RS scores higher overall (63/100 vs 49/100) and 15.5% revenue growth. FRD offers better value entry with a 24.4% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Friedman Industries Inc. Common Stock

BASIC MATERIALS · STEEL · USA

Friedman Industries, Incorporated is engaged in the steel processing, pipe fabrication and processing, and steel and pipe distribution businesses in the United States. The company is headquartered in Longview, Texas.

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Reliance Steel & Aluminum Co

BASIC MATERIALS · STEEL · USA

Reliance Steel & Aluminum Co. is a metal service center company. The company is headquartered in Los Angeles, California.

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