Head to Head Survey: Ryerson (NYSE:RYI) & Constellium (NYSE:CSTM)

Ryerson (NYSE:RYI) and Constellium (NYSE:CSTM) are both small-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ryerson and Constellium, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ryerson	0	1	0	0	2.00
Constellium	0	0	3	0	3.00

Ryerson currently has a consensus target price of $25.00, indicating a potential upside of 11.36%. Constellium has a consensus target price of $19.00, indicating a potential upside of 37.28%. Given Constellium’s stronger consensus rating and higher possible upside, analysts clearly believe Constellium is more favorable than Ryerson.

Volatility and Risk

Ryerson has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Constellium has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Profitability

This table compares Ryerson and Constellium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ryerson	-0.15%	-0.65%	-0.22%
Constellium	0.92%	7.74%	1.34%

Insider and Institutional Ownership

94.8% of Ryerson shares are held by institutional investors. Comparatively, 92.6% of Constellium shares are held by institutional investors. 4.0% of Ryerson shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Ryerson and Constellium”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ryerson	$4.60 billion	0.16	-$8.60 million	($0.22)	-102.05
Constellium	$7.34 billion	0.27	$56.00 million	$0.46	30.09

Constellium has higher revenue and earnings than Ryerson. Ryerson is trading at a lower price-to-earnings ratio than Constellium, indicating that it is currently the more affordable of the two stocks.

Summary

Constellium beats Ryerson on 12 of the 14 factors compared between the two stocks.

About Ryerson

Ryerson Holding Corporation, together with its subsidiaries, processes and distributes industrial metals in the United States and internationally. It offers a line of products in carbon steel, stainless steel, alloy steels, and aluminum, as well as nickel and red metals in various shapes and forms, including coils, sheets, rounds, hexagons, square and flat bars, plates, structural, and tubing. The company also provides processing services. It serves various industries, including metal fabrication and machine shops, industrial machinery and equipment, commercial ground transportation, consumer durable equipment, food processing and agricultural equipment, construction equipment, oil and gas, and HVAC manufacturing. Ryerson Holding Corporation was founded in 1842 and is headquartered in Chicago, Illinois.

About Constellium

Constellium SE, together with its subsidiaries, engages in the design, manufacture, and sale of rolled and extruded aluminum products for the packaging, aerospace, automotive, defense, and other transportation and industry end-markets. The company operates through three segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry. The Packaging & Automotive Rolled Products segment produces rolled aluminum products, including can stock and closure stock for the beverage and food industry, as well as foil stock for the flexible packaging market. This segment also supplies automotive body sheets and heat exchangers for the automotive market; and specialty reflective sheets. The Aerospace & Transportation segment provides rolled aluminum products, including aerospace plates, sheets, and extrusions; and aerospace wing skins, as well as plates and sheets for use in transportation, industry, and defense applications. The Automotive Structures & Industry segment offers extruded aluminium products and aluminium structural components for the automotive industry, including crash-management systems, body structures, side impact beams, and battery enclosures; and fabricates hard and soft alloy extruded profiles for various industry applications in the automotive, engineering, rail, and other transportation end markets. This segment also provides downstream technology and services, which include pre-machining, surface treatment, research and development, and technical support services. It sells its products directly or through distributors in France, Germany, the Czech Republic, the United Kingdom, Switzerland, and the United States, as well as Shanghai, and Seoul. The company was incorporated in 2010 and is headquartered in Paris, France.