RS vs HWM vs ATI vs TDG

For growth investors, TransDigm Group Incorporated (TDG) is the stronger pick with 11.

2% 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. 4x trailing P/E (18. 9x 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. 4x versus Howmet Aerospace Inc. at 73. 5x. On forward P/E, Reliance Steel & Aluminum Co. is actually cheaper at 18. 9x. 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. 96x versus Howmet Aerospace Inc. 's 1. 16x — 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 +715. 2%, compared to +119. 6% for Reliance Steel & Aluminum Co. (RS). Over 10 years, the gap is even starker: HWM returned +1240% versus RS's +463. 7%. 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 ATI Inc. 's 1. 51β — meaning ATI is approximately 103% 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 102% for ATI Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), TransDigm Group Incorporated (TDG) is pulling ahead at 11.

2% 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, TDG leads at 17. 6% 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.

TransDigm Group Incorporated (TDG) is the more profitable company, earning 23.

5% net margin versus 5. 2% for Reliance Steel & Aluminum Co. — meaning it keeps 23. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TDG leads at 47. 2% versus 7. 2% for RS. At the gross margin level — before operating expenses — TDG leads at 60. 1%, 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. 96x versus Howmet Aerospace Inc. 's 1. 16x. 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 18. 9x forward P/E versus 58. 7x for Howmet Aerospace Inc. — 39. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TDG: 30. 3% to $1617. 88.

In this comparison, TDG (13.

3% yield), RS (1. 3% yield), HWM (0. 2% yield) pay a dividend. ATI does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, TransDigm Group Incorporated (TDG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

79), 13. 3% yield, +595. 3% 10Y return). ATI Inc. (ATI) carries a higher beta of 1. 51 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TDG: +595. 3%, ATI: +1050%), 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) and ATI (Industrials) and TDG (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: RS is a mid-cap quality compounder stock; HWM is a mid-cap quality compounder stock; ATI is a mid-cap quality compounder stock; TDG is a mid-cap income-oriented stock. RS, TDG pay a dividend while HWM, ATI do 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.