BlueLinx (NYSE:BXC) & Reliance (NYSE:RS) Critical Comparison

Reliance (NYSE:RS) and BlueLinx (NYSE:BXC) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Insider and Institutional Ownership

79.3% of Reliance shares are held by institutional investors. Comparatively, 90.8% of BlueLinx shares are held by institutional investors. 0.4% of Reliance shares are held by company insiders. Comparatively, 3.6% of BlueLinx shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Reliance has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, BlueLinx has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reliance	5.65%	12.51%	8.47%
BlueLinx	-0.06%	0.13%	0.05%

Earnings and Valuation

This table compares Reliance and BlueLinx”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reliance	$15.81 billion	1.25	$739.40 million	$17.20	22.53
BlueLinx	$2.95 billion	0.21	$220,000.00	($0.25)	-316.48

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

Analyst Recommendations

This is a summary of current ratings for Reliance and BlueLinx, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reliance	1	5	2	1	2.33
BlueLinx	1	1	1	0	2.00

Reliance presently has a consensus target price of $377.50, suggesting a potential downside of 2.60%. BlueLinx has a consensus target price of $83.50, suggesting a potential upside of 5.54%. Given BlueLinx’s higher probable upside, analysts clearly believe BlueLinx is more favorable than Reliance.

Summary

Reliance beats BlueLinx on 11 of the 15 factors compared between the two stocks.

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.

About BlueLinx

BlueLinx Holdings Inc., together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products that are used for structural support in construction projects. It also provides various value-added services and solutions to customers and suppliers. The company serves national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers. BlueLinx Holdings Inc. was incorporated in 2004 and is headquartered in Marietta, Georgia.