RS vs HWM

For growth investors, Howmet Aerospace Inc.

(HWM) is the stronger pick with 11. 1% revenue growth year-over-year, versus 3. 3% for Reliance Steel & Aluminum Co. (RS). 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 Howmet Aerospace Inc. (HWM) a "Buy" — based on 23 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 Howmet Aerospace Inc. at 69. 1x. On forward P/E, Reliance Steel & Aluminum Co. is actually cheaper at 19. 3x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Reliance Steel & Aluminum Co. wins at 0. 97x versus Howmet Aerospace Inc. 's 1. 09x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Howmet Aerospace Inc.

(HWM) delivered a total return of +699. 6%, compared to +126. 6% for Reliance Steel & Aluminum Co. (RS). Over 10 years, the gap is even starker: HWM returned +1089% versus RS's +454. 9%. 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 Howmet Aerospace Inc. 's 0. 93β — meaning HWM is approximately 25% 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 57% for Howmet Aerospace Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Howmet Aerospace Inc.

(HWM) is pulling ahead at 11. 1% versus 3. 3% for Reliance Steel & Aluminum Co. (RS). On earnings-per-share growth, the picture is similar: Howmet Aerospace Inc. grew EPS 32. 0% year-over-year, compared to -10. 2% for Reliance Steel & Aluminum Co.. Over a 3-year CAGR, HWM leads at 13. 4% 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.

Howmet Aerospace Inc.

(HWM) is the more profitable company, earning 18. 3% net margin versus 5. 2% for Reliance Steel & Aluminum Co. — meaning it keeps 18. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HWM leads at 25. 8% versus 7. 2% for RS. At the gross margin level — before operating expenses — HWM leads at 30. 7%, 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, Reliance Steel & Aluminum Co. (RS) is the more undervalued stock at a PEG of 0. 97x versus Howmet Aerospace Inc. 's 1. 09x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Reliance Steel & Aluminum Co. (RS) trades at 19. 3x forward P/E versus 55. 2x for Howmet Aerospace Inc. — 35. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HWM: 7. 1% to $274. 67.

All stocks in this comparison pay dividends.

Reliance Steel & Aluminum Co. (RS) offers the highest yield at 1. 3%, versus 0. 2% for Howmet Aerospace Inc. (HWM).

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%, HWM: +1089%), 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 (RS (Basic Materials) and HWM (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

RS pays a dividend while HWM does not, making them suitable for different income and tax situations. 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.