RS vs. NUE, STLD, X, ATI, CLF, CRS, CMC, WOR, HAYN, and ZEUS
Should you be buying Reliance stock or one of its competitors? The main competitors of Reliance include Nucor (NUE), Steel Dynamics (STLD), United States Steel (X), ATI (ATI), Cleveland-Cliffs (CLF), Carpenter Technology (CRS), Commercial Metals (CMC), Worthington Enterprises (WOR), Haynes International (HAYN), and Olympic Steel (ZEUS). These companies are all part of the "steel" industry.
Nucor (NYSE:NUE) and Reliance (NYSE:RS) are both large-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, community ranking, valuation, institutional ownership, dividends, media sentiment, profitability, earnings and risk.
Nucor has a net margin of 10.45% compared to Nucor's net margin of 8.67%. Nucor's return on equity of 16.26% beat Reliance's return on equity.
76.5% of Nucor shares are owned by institutional investors. Comparatively, 79.3% of Reliance shares are owned by institutional investors. 0.5% of Nucor shares are owned by insiders. Comparatively, 0.7% of Reliance shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Nucor has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, Reliance has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
Nucor received 202 more outperform votes than Reliance when rated by MarketBeat users. However, 64.81% of users gave Reliance an outperform vote while only 64.24% of users gave Nucor an outperform vote.
Nucor currently has a consensus price target of $191.29, suggesting a potential upside of 18.89%. Reliance has a consensus price target of $329.40, suggesting a potential upside of 8.34%. Given Reliance's stronger consensus rating and higher possible upside, equities research analysts clearly believe Nucor is more favorable than Reliance.
Nucor pays an annual dividend of $2.16 per share and has a dividend yield of 1.3%. Reliance pays an annual dividend of $4.40 per share and has a dividend yield of 1.4%. Nucor pays out 12.7% of its earnings in the form of a dividend. Reliance pays out 20.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nucor has increased its dividend for 51 consecutive years and Reliance has increased its dividend for 14 consecutive years.
Nucor has higher revenue and earnings than Reliance. Nucor is trading at a lower price-to-earnings ratio than Reliance, indicating that it is currently the more affordable of the two stocks.
In the previous week, Reliance had 8 more articles in the media than Nucor. MarketBeat recorded 38 mentions for Reliance and 30 mentions for Nucor. Reliance's average media sentiment score of 0.59 beat Nucor's score of 0.34 indicating that Nucor is being referred to more favorably in the media.
Summary
Nucor beats Reliance on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding RS and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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