Head-To-Head Contrast: Rectitude (NASDAQ:RECT) versus Reliance (NYSE:RS)

Rectitude (NASDAQ:RECT) and Reliance (NYSE:RS) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Profitability

This table compares Rectitude and Reliance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rectitude	N/A	N/A	N/A
Reliance	5.65%	12.51%	8.47%

Insider and Institutional Ownership

79.3% of Reliance shares are held by institutional investors. 0.4% of Reliance shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Rectitude and Reliance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rectitude	1	0	0	0	1.00
Reliance	1	5	2	1	2.33

Reliance has a consensus price target of $378.67, suggesting a potential downside of 9.51%. Given Reliance’s stronger consensus rating and higher probable upside, analysts plainly believe Reliance is more favorable than Rectitude.

Earnings & Valuation

This table compares Rectitude and Reliance”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rectitude	$39.74 million	0.49	$2.78 million	N/A	N/A
Reliance	$14.29 billion	1.49	$739.40 million	$17.20	24.33

Reliance has higher revenue and earnings than Rectitude.

Volatility and Risk

Rectitude has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Reliance has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.

Summary

Reliance beats Rectitude on 12 of the 13 factors compared between the two stocks.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.

About Reliance

Reliance, Inc. operates as a diversified metal solutions provider and the metals service center company in the United States, Canada, and internationally. The company distributes a line of approximately 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium, and specialty steel products; and provides metals processing services to general manufacturing, non-residential construction, transportation, aerospace, energy, electronics and semiconductor fabrication, and heavy industries. It sells its products directly to original equipment manufacturers, which primarily include small machine shops and fabricators. The company was formerly known as Reliance Steel & Aluminum Co. and changed its name to Reliance, Inc. in February 2024. Reliance, Inc. was founded in 1939 and is based in Scottsdale, Arizona.