Contrasting Reliance (NYSE:RS) and Custom Truck One Source (NYSE:CTOS)

Custom Truck One Source (NYSE:CTOS) and Reliance (NYSE:RS) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares Custom Truck One Source and Reliance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Custom Truck One Source	1.05%	2.66%	0.61%
Reliance	5.65%	12.51%	8.47%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Custom Truck One Source and Reliance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Custom Truck One Source	2	1	4	1	2.50
Reliance	1	5	2	1	2.33

Custom Truck One Source currently has a consensus price target of $12.00, suggesting a potential upside of 24.43%. Reliance has a consensus price target of $379.83, suggesting a potential downside of 1.66%. Given Custom Truck One Source’s stronger consensus rating and higher probable upside, analysts plainly believe Custom Truck One Source is more favorable than Reliance.

Institutional & Insider Ownership

90.1% of Custom Truck One Source shares are owned by institutional investors. Comparatively, 79.3% of Reliance shares are owned by institutional investors. 4.7% of Custom Truck One Source shares are owned by insiders. Comparatively, 0.4% of Reliance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Custom Truck One Source has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Reliance has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Valuation & Earnings

This table compares Custom Truck One Source and Reliance”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Custom Truck One Source	$1.94 billion	1.13	-$31.05 million	$0.09	107.16
Reliance	$14.29 billion	1.38	$739.40 million	$17.20	22.46

Reliance has higher revenue and earnings than Custom Truck One Source. Reliance is trading at a lower price-to-earnings ratio than Custom Truck One Source, indicating that it is currently the more affordable of the two stocks.

About Custom Truck One Source

Custom Truck One Source, Inc. provides specialty equipment rental and sale services to the electric utility transmission and distribution, telecommunications, rail, forestry, waste management, and other infrastructure-related industries in the United States and Canada. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). The ERS segment owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. The TES segment offers new equipment for sale to be used for end-markets, which can be modified to meet customers specific needs. The APS segment provides truck and equipment maintenance and repair services; and rents and sells specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. Custom Truck One Source, Inc. was founded in 1988 and is headquartered in Kansas City, Missouri.

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.