Analyzing Capstone Copper (OTCMKTS:CSFFF) & Reliance (NYSE:RS)

Capstone Copper (OTCMKTS:CSFFF) and Reliance (NYSE:RS) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Capstone Copper and Reliance”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capstone Copper	$1.60 billion	0.00	$82.91 million	$0.11	N/A
Reliance	$13.92 billion	1.00	$875.20 million	$13.68	19.44

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Capstone Copper	3.89%	2.62%	1.40%
Reliance	5.23%	10.37%	7.24%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Capstone Copper and Reliance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capstone Copper	0	0	0	0	0.00
Reliance	0	5	3	0	2.38

Reliance has a consensus price target of $323.00, suggesting a potential upside of 21.43%. Given Reliance’s stronger consensus rating and higher possible upside, analysts plainly believe Reliance is more favorable than Capstone Copper.

Insider & Institutional Ownership

0.6% of Capstone Copper shares are held by institutional investors. Comparatively, 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Reliance beats Capstone Copper on 11 of the 11 factors compared between the two stocks.

About Capstone Copper

Capstone Mining Corp. engages in the exploration and production of base metals in the United States, Mexico, Canada, and Chile. The company explores for copper, molybdenum, silver, zinc, lead, iron, and gold deposits. It holds interests in the Pinto Valley, an open pit copper mine located in Arizona, the United States; and the Cozamin, a copper-silver underground mine located in the state of Zacatecas, Mexico. The company also owns a 100% interest in copper-iron-gold Santo Domingo development project in Region III, Chile. The company was formerly known as Capstone Gold Corp. and changed its name to Capstone Mining Corp. in February 2006. The company is headquartered in Vancouver, Canada.

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.