RS vs ZEUS

For growth investors, Reliance Steel & Aluminum Co.

(RS) is the stronger pick with 3. 3% revenue growth year-over-year, versus -10. 0% for Olympic Steel, Inc. (ZEUS). Olympic Steel, Inc. (ZEUS) offers the better valuation at 24. 3x trailing P/E (20. 7x forward), making it the more compelling value choice. Analysts rate Olympic Steel, Inc. (ZEUS) a "Buy" — based on 6 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, Olympic Steel, Inc.

(ZEUS) is the cheapest at 24. 3x versus Reliance Steel & Aluminum Co. at 26. 9x. On forward P/E, Reliance Steel & Aluminum Co. is actually cheaper at 19. 3x — 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: Olympic Steel, Inc. wins at 0. 49x versus Reliance Steel & Aluminum Co. 's 0. 97x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Reliance Steel & Aluminum Co.

(RS) delivered a total return of +126. 6%, compared to +53. 9% for Olympic Steel, Inc. (ZEUS). Over 10 years, the gap is even starker: RS returned +454. 9% versus ZEUS's +125. 3%. 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 Olympic Steel, Inc. 's 1. 48β — meaning ZEUS is approximately 98% 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 55% for Olympic Steel, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Reliance Steel & Aluminum Co.

(RS) is pulling ahead at 3. 3% versus -10. 0% for Olympic Steel, Inc. (ZEUS). On earnings-per-share growth, the picture is similar: Reliance Steel & Aluminum Co. grew EPS -10. 2% year-over-year, compared to -48. 8% for Olympic Steel, Inc.. Over a 3-year CAGR, ZEUS 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.

Reliance Steel & Aluminum Co.

(RS) is the more profitable company, earning 5. 2% net margin versus 1. 2% for Olympic Steel, Inc. — meaning it keeps 5. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RS leads at 7. 2% versus 2. 5% for ZEUS. At the gross margin level — before operating expenses — RS leads at 26. 8%, 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, Olympic Steel, Inc. (ZEUS) is the more undervalued stock at a PEG of 0. 49x versus Reliance Steel & Aluminum Co. 's 0. 97x. 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 20. 7x for Olympic Steel, Inc. — 1. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RS: -3. 8% to $362. 00.

All stocks in this comparison pay dividends.

Reliance Steel & Aluminum Co. (RS) offers the highest yield at 1. 3%, versus 1. 2% for Olympic Steel, Inc. (ZEUS).

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%, ZEUS: +125. 3%), 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.

Both stocks operate in the Basic Materials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

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.