WOR vs STLD vs RS

For growth investors, Steel Dynamics, Inc.

(STLD) is the stronger pick with 3. 6% revenue growth year-over-year, versus -7. 4% for Worthington Industries, Inc. (WOR). Reliance Steel & Aluminum Co. (RS) offers the better valuation at 26. 9x trailing P/E (19. 3x forward), making it the more compelling value choice. Analysts rate Worthington Industries, Inc. (WOR) a "Buy" — based on 15 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Reliance Steel & Aluminum Co.

(RS) is the cheapest at 26. 9x versus Steel Dynamics, Inc. at 30. 3x. On forward P/E, Steel Dynamics, Inc. is actually cheaper at 16. 2x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Steel Dynamics, Inc. wins at 0. 64x versus Worthington Industries, Inc. 's 2. 55x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Steel Dynamics, Inc.

(STLD) delivered a total return of +305. 6%, compared to +35. 7% for Worthington Industries, Inc. (WOR). Over 10 years, the gap is even starker: STLD returned +918. 7% versus WOR's +175. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Reliance Steel & Aluminum Co.

(RS) is the lower-risk stock at 0. 75β versus Steel Dynamics, Inc. 's 1. 32β — meaning STLD is approximately 77% more volatile than RS relative to the S&P 500. On balance sheet safety, Reliance Steel & Aluminum Co. (RS) carries a lower debt/equity ratio of 28% versus 47% for Steel Dynamics, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Steel Dynamics, Inc.

(STLD) is pulling ahead at 3. 6% versus -7. 4% for Worthington Industries, Inc. (WOR). On earnings-per-share growth, the picture is similar: Reliance Steel & Aluminum Co. grew EPS -10. 2% year-over-year, compared to -18. 8% for Steel Dynamics, Inc.. Over a 3-year CAGR, RS leads at -5. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Worthington Industries, Inc.

(WOR) is the more profitable company, earning 8. 3% net margin versus 5. 2% for Reliance Steel & Aluminum Co. — meaning it keeps 8. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: STLD leads at 8. 1% versus 4. 3% for WOR. At the gross margin level — before operating expenses — WOR leads at 27. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Steel Dynamics, Inc. (STLD) is the more undervalued stock at a PEG of 0. 64x versus Worthington Industries, Inc. 's 2. 55x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Steel Dynamics, Inc. (STLD) trades at 16. 2x forward P/E versus 19. 3x for Reliance Steel & Aluminum Co. — 3. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WOR: 19. 9% to $67. 00.

All stocks in this comparison pay dividends.

Reliance Steel & Aluminum Co. (RS) offers the highest yield at 1. 3%, versus 0. 8% for Steel Dynamics, Inc. (STLD).

For long-horizon retirement investors, Reliance Steel & Aluminum Co.

(RS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 75), 1. 3% yield, +454. 9% 10Y return). Both have compounded well over 10 years (RS: +454. 9%, WOR: +175. 4%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (WOR (Industrials) and STLD (Basic Materials) and RS (Basic Materials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.