WallStSmart

Reliance Steel & Aluminum Co (RS)vsWorthington Steel Inc (WS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Reliance Steel & Aluminum Co generates 338% more annual revenue ($14.29B vs $3.27B). RS leads profitability with a 5.2% profit margin vs 3.8%. WS trades at a lower P/E of 14.2x. RS earns a higher WallStSmart Score of 59/100 (C).

RS

Buy

59

out of 100

Grade: C

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

WS

Buy

56

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 8.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

RSUndervalued (+16.7%)

Margin of Safety

+16.7%

Fair Value

$432.82

Current Price

$298.99

$133.83 discount

UndervaluedFair: $432.82Overvalued
WSUndervalued (+58.1%)

Margin of Safety

+58.1%

Fair Value

$115.60

Current Price

$35.01

$80.59 discount

UndervaluedFair: $115.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

WS4 strengths · Avg: 8.0/10
P/E RatioValuation
14.2x8/10

Attractively priced relative to earnings

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
18.0%8/10

18.0% revenue growth

EPS GrowthGrowth
48.0%8/10

Earnings expanding 48.0% YoY

Areas to Watch

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

WS3 concerns · Avg: 3.0/10
Market CapQuality
$1.78B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
3.8%3/10

3.8% margin — thin

Operating MarginProfitability
2.6%3/10

Operating margin of 2.6%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : WS

The strongest argument for WS centers on P/E Ratio, Price/Book, Revenue Growth. Revenue growth of 18.0% demonstrates continued momentum.

Bear Case : RS

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

Bear Case : WS

The primary concerns for WS are Market Cap, Profit Margin, Operating Margin. Thin 3.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

RS profiles as a value stock while WS is a growth play — different risk/reward profiles.

WS carries more volatility with a beta of 1.59 — expect wider price swings.

WS is growing revenue faster at 18.0% — sustainability is the question.

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

Bottom Line

RS scores higher overall (59/100 vs 56/100) and 11.9% revenue growth. WS offers better value entry with a 58.1% margin of safety. 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.

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.

Visit Website →

Worthington Steel Inc

BASIC MATERIALS · STEEL · USA

Worthington Steel, Inc. is a steel processor in North America. The company is headquartered in Columbus, Ohio.

Want to dig deeper into these stocks?