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 2346% more annual revenue ($14.29B vs $584.35M). RS leads profitability with a 5.2% profit margin vs 2.7%. FRD trades at a lower P/E of 7.8x. RS earns a higher WallStSmart Score of 59/100 (C).

FRD

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 6.0Value: 5.7Quality: 8.5
Piotroski: 3/9Altman Z: 4.26

RS

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 9.3Quality: 8.5
Piotroski: 3/9Altman Z: 4.41
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FRDSignificantly Overvalued (-39.3%)

Margin of Safety

-39.3%

Fair Value

$15.10

Current Price

$18.35

$3.25 premium

UndervaluedFair: $15.10Overvalued
RSUndervalued (+16.7%)

Margin of Safety

+16.7%

Fair Value

$432.82

Current Price

$298.99

$133.83 discount

UndervaluedFair: $432.82Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FRD5 strengths · Avg: 9.6/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Debt/EquityHealth
0.0310/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.2610/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

RS3 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
4.4110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

FRD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.8%4/10

1.8% revenue growth

Market CapQuality
$123.75M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

RS3 concerns · Avg: 3.3/10
PEG RatioValuation
2.294/10

Expensive relative to growth rate

Profit MarginProfitability
5.2%3/10

5.2% 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, Debt/Equity.

Bull Case : RS

The strongest argument for RS centers on Altman Z-Score, Debt/Equity, Price/Book. Revenue growth of 11.9% demonstrates continued momentum.

Bear Case : FRD

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

Bear Case : RS

The primary concerns for RS are PEG Ratio, Profit Margin, Piotroski F-Score.

Key Dynamics to Monitor

FRD carries more volatility with a beta of 1.58 — expect wider price swings.

RS is growing revenue faster at 11.9% — sustainability is the question.

RS generates stronger free cash flow (203M), providing more financial flexibility.

Monitor STEEL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RS scores higher overall (59/100 vs 58/100) and 11.9% revenue growth. Both earn "Buy" and "Buy" 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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