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WS vs RS
Revenue, margins, valuation, and 5-year total return — side by side.
Steel
WS vs RS — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Steel | Steel |
| Market Cap | $2.08B | $19.24B |
| Revenue (TTM) | $3.27B | $14.84B |
| Net Income (TTM) | $125M | $806M |
| Gross Margin | 12.8% | 27.2% |
| Operating Margin | 4.8% | 7.5% |
| Forward P/E | 19.5x | 19.3x |
| Total Debt | $228M | $1.99B |
| Cash & Equiv. | $38M | $217M |
WS vs RS — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | Nov 23 | May 26 | Return |
|---|---|---|---|
| Worthington Steel, … (WS) | 100 | 152.3 | +52.3% |
| Reliance Steel & Al… (RS) | 100 | 136.8 | +36.8% |
Price return only. Dividends and distributions are not included.
Quick Verdict: WS vs RS
Each card shows where this stock fits in a portfolio — not just who wins on paper.
WS is the clearest fit if your priority is dividends and momentum.
- 1.5% yield, 2-year raise streak, vs RS's 1.3%
- +62.0% vs RS's +28.9%
RS carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 23 yrs, beta 0.75, yield 1.3%
- Rev growth 3.3%, EPS growth -10.2%, 3Y rev CAGR -5.7%
- 454.9% 10Y total return vs WS's 73.3%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 3.3% revenue growth vs WS's -9.8% | |
| Value | Lower P/E (19.3x vs 19.5x) | |
| Quality / Margins | 5.4% margin vs WS's 3.8% | |
| Stability / Safety | Beta 0.75 vs WS's 1.92 | |
| Dividends | 1.5% yield, 2-year raise streak, vs RS's 1.3% | |
| Momentum (1Y) | +62.0% vs RS's +28.9% | |
| Efficiency (ROA) | 7.6% ROA vs WS's 5.8%, ROIC 8.9% vs 8.2% |
WS vs RS — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
WS vs RS — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
RS leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
RS is the larger business by revenue, generating $14.8B annually — 4.5x WS's $3.3B. Profitability is closely matched — net margins range from 5.4% (RS) to 3.8% (WS).
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $3.3B | $14.8B |
| EBITDAEarnings before interest/tax | $231M | $1.4B |
| Net IncomeAfter-tax profit | $125M | $806M |
| Free Cash FlowCash after capex | $127M | $612M |
| Gross MarginGross profit ÷ Revenue | +12.8% | +27.2% |
| Operating MarginEBIT ÷ Revenue | +4.8% | +7.5% |
| Net MarginNet income ÷ Revenue | +3.8% | +5.4% |
| FCF MarginFCF ÷ Revenue | +3.9% | +4.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +18.0% | +15.5% |
| EPS Growth (YoY)Latest quarter vs prior year | +48.0% | +36.4% |
Valuation Metrics
WS leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
At 19.1x trailing earnings, WS trades at a 29% valuation discount to RS's 26.9x P/E. On an enterprise value basis, WS's 10.6x EV/EBITDA is more attractive than RS's 16.2x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $2.1B | $19.2B |
| Enterprise ValueMkt cap + debt − cash | $2.3B | $21.0B |
| Trailing P/EPrice ÷ TTM EPS | 19.12x | 26.93x |
| Forward P/EPrice ÷ next-FY EPS est. | 19.48x | 19.32x |
| PEG RatioP/E ÷ EPS growth rate | — | 1.36x |
| EV / EBITDAEnterprise value multiple | 10.63x | 16.16x |
| Price / SalesMarket cap ÷ Revenue | 0.67x | 1.35x |
| Price / BookPrice ÷ Book value/share | 1.73x | 2.77x |
| Price / FCFMarket cap ÷ FCF | 20.77x | 38.29x |
Profitability & Efficiency
WS leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
RS delivers a 11.2% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $9 for WS. WS carries lower financial leverage with a 0.19x debt-to-equity ratio, signaling a more conservative balance sheet compared to RS's 0.28x. On the Piotroski fundamental quality scale (0–9), WS scores 6/9 vs RS's 5/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +9.3% | +11.2% |
| ROA (TTM)Return on assets | +5.8% | +7.6% |
| ROICReturn on invested capital | +8.2% | +8.9% |
| ROCEReturn on capital employed | +11.4% | +11.2% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.19x | 0.28x |
| Net DebtTotal debt minus cash | $190M | $1.8B |
| Cash & Equiv.Liquid assets | $38M | $217M |
| Total DebtShort + long-term debt | $228M | $2.0B |
| Interest CoverageEBIT ÷ Interest expense | 22.24x | 18.77x |
Total Returns (Dividends Reinvested)
Evenly matched — WS and RS each lead in 3 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in RS five years ago would be worth $22,658 today (with dividends reinvested), compared to $17,328 for WS. Over the past 12 months, WS leads with a +62.0% total return vs RS's +28.9%. The 3-year compound annual growth rate (CAGR) favors WS at 20.1% vs RS's 17.4% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +19.6% | +27.7% |
| 1-Year ReturnPast 12 months | +62.0% | +28.9% |
| 3-Year ReturnCumulative with dividends | +73.3% | +62.0% |
| 5-Year ReturnCumulative with dividends | +73.3% | +126.6% |
| 10-Year ReturnCumulative with dividends | +73.3% | +454.9% |
| CAGR (3Y)Annualised 3-year return | +20.1% | +17.4% |
Risk & Volatility
RS leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
RS is the less volatile stock with a 0.75 beta — it tends to amplify market swings less than WS's 1.92 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. RS currently trades 98.8% from its 52-week high vs WS's 85.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.92x | 0.75x |
| 52-Week HighHighest price in past year | $49.17 | $381.00 |
| 52-Week LowLowest price in past year | $24.23 | $260.31 |
| % of 52W HighCurrent price vs 52-week peak | +85.2% | +98.8% |
| RSI (14)Momentum oscillator 0–100 | 65.7 | 77.6 |
| Avg Volume (50D)Average daily shares traded | 299K | 315K |
Analyst Outlook
Evenly matched — WS and RS each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates WS as "Buy" and RS as "Hold". Consensus price targets imply -3.8% upside for RS (target: $362) vs -9.3% for WS (target: $38). For income investors, WS offers the higher dividend yield at 1.54% vs RS's 1.28%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $38.00 | $362.00 |
| # AnalystsCovering analysts | 1 | 27 |
| Dividend YieldAnnual dividend ÷ price | +1.5% | +1.3% |
| Dividend StreakConsecutive years of raises | 2 | 23 |
| Dividend / ShareAnnual DPS | $0.64 | $4.82 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +3.1% |
RS leads in 2 of 6 categories (Income & Cash Flow, Risk & Volatility). WS leads in 2 (Valuation Metrics, Profitability & Efficiency). 2 tied.
WS vs RS: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is WS or RS a better buy right now?
For growth investors, Reliance Steel & Aluminum Co.
(RS) is the stronger pick with 3. 3% revenue growth year-over-year, versus -9. 8% for Worthington Steel, Inc. (WS). Worthington Steel, Inc. (WS) offers the better valuation at 19. 1x trailing P/E (19. 5x forward), making it the more compelling value choice. Analysts rate Worthington Steel, Inc. (WS) a "Buy" — based on 1 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.
02Which has the better valuation — WS or RS?
On trailing P/E, Worthington Steel, Inc.
(WS) is the cheapest at 19. 1x 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.
03Which is the better long-term investment — WS or RS?
Over the past 5 years, Reliance Steel & Aluminum Co.
(RS) delivered a total return of +126. 6%, compared to +73. 3% for Worthington Steel, Inc. (WS). Over 10 years, the gap is even starker: RS returned +454. 9% versus WS's +73. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — WS or RS?
By beta (market sensitivity over 5 years), Reliance Steel & Aluminum Co.
(RS) is the lower-risk stock at 0. 75β versus Worthington Steel, Inc. 's 1. 92β — meaning WS is approximately 158% more volatile than RS relative to the S&P 500. On balance sheet safety, Worthington Steel, Inc. (WS) carries a lower debt/equity ratio of 19% versus 28% for Reliance Steel & Aluminum Co. — giving it more financial flexibility in a downturn.
05Which is growing faster — WS or RS?
By revenue growth (latest reported year), Reliance Steel & Aluminum Co.
(RS) is pulling ahead at 3. 3% versus -9. 8% for Worthington Steel, Inc. (WS). On earnings-per-share growth, the picture is similar: Reliance Steel & Aluminum Co. grew EPS -10. 2% year-over-year, compared to -29. 6% for Worthington Steel, 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.
06Which has better profit margins — WS or RS?
Reliance Steel & Aluminum Co.
(RS) is the more profitable company, earning 5. 2% net margin versus 3. 6% for Worthington 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 4. 8% for WS. 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.
07Is WS or RS more undervalued right now?
On forward earnings alone, Reliance Steel & Aluminum Co.
(RS) trades at 19. 3x forward P/E versus 19. 5x for Worthington Steel, Inc. — 0. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RS: -3. 8% to $362. 00.
08Which pays a better dividend — WS or RS?
All stocks in this comparison pay dividends.
Worthington Steel, Inc. (WS) offers the highest yield at 1. 5%, versus 1. 3% for Reliance Steel & Aluminum Co. (RS).
09Is WS or RS better for a retirement portfolio?
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). Worthington Steel, Inc. (WS) carries a higher beta of 1. 92 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (RS: +454. 9%, WS: +73. 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.
10What are the main differences between WS and RS?
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.
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