Reliance (NYSE:RS – Get Free Report) and DXP Enterprises (NASDAQ:DXPE – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
79.3% of Reliance shares are owned by institutional investors. Comparatively, 74.8% of DXP Enterprises shares are owned by institutional investors. 0.4% of Reliance shares are owned by insiders. Comparatively, 22.0% of DXP Enterprises shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Reliance and DXP Enterprises’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Reliance | 5.65% | 12.51% | 8.47% |
| DXP Enterprises | 4.35% | 18.51% | 5.70% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Reliance | 1 | 5 | 2 | 1 | 2.33 |
| DXP Enterprises | 0 | 2 | 3 | 0 | 2.60 |
Reliance currently has a consensus price target of $377.50, indicating a potential downside of 1.71%. DXP Enterprises has a consensus price target of $187.00, indicating a potential downside of 0.66%. Given DXP Enterprises’ stronger consensus rating and higher possible upside, analysts plainly believe DXP Enterprises is more favorable than Reliance.
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, DXP Enterprises has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Earnings and Valuation
This table compares Reliance and DXP Enterprises”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Reliance | $14.29 billion | 1.37 | $739.40 million | $17.20 | 22.33 |
| DXP Enterprises | $2.14 billion | 1.37 | $88.68 million | $5.68 | 33.14 |
Reliance has higher revenue and earnings than DXP Enterprises. Reliance is trading at a lower price-to-earnings ratio than DXP Enterprises, indicating that it is currently the more affordable of the two stocks.
Summary
Reliance beats DXP Enterprises on 8 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 DXP Enterprises
DXP Enterprises, Inc., together with its subsidiaries, engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services in the United States and Canada. It operates through three segments: Service Centers (SC), Supply Chain Services (SCS), and Innovative Pumping Solutions (IPS). The SC segment offers MRO products, equipment, and integrated services, including technical expertise and logistics services. It offers a range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products, and safety services categories. This segment serves customers in the oil and gas, food and beverage, petrochemical, transportation, other general industrial, mining, construction, chemical, municipal, agriculture, and pulp and paper industries. The SCS segment manages procurement and inventory vinventory optimization and management, storeroom management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement, and customized reporting services. Its programs include SmartAgreement, a procurement solution for various MRO categories; SmartBuy, an on-site or centralized MRO procurement solution; SmartSource, an on-site procurement and storeroom management solution; SmartStore, an e-Catalog solution; SmartVend, an industrial dispensing solution; and SmartServ, an integrated service pump solution. The IPS segment fabricates and assembles custom-made pump packages; remanufactures pumps; and manufactures branded private label pumps. DXP Enterprises, Inc. was founded in 1908 and is based in Houston, Texas.
Receive News & Ratings for Reliance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Reliance and related companies with MarketBeat.com's FREE daily email newsletter.
