Constellium (NYSE:CSTM – Get Free Report) and Ryerson (NYSE:RYI – Get Free Report) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, risk, earnings, valuation and institutional ownership.
Volatility and Risk
Constellium has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, Ryerson has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.
Profitability
This table compares Constellium and Ryerson’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Constellium | 0.92% | 7.74% | 1.34% |
| Ryerson | -0.15% | -0.65% | -0.22% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Constellium | $7.43 billion | 0.27 | $56.00 million | $0.46 | 30.26 |
| Ryerson | $4.60 billion | 0.16 | -$8.60 million | ($0.22) | -106.00 |
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.
Analyst Ratings
This is a summary of recent ratings for Constellium and Ryerson, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Constellium | 0 | 0 | 3 | 0 | 3.00 |
| Ryerson | 0 | 1 | 0 | 0 | 2.00 |
Constellium currently has a consensus price target of $19.00, suggesting a potential upside of 36.50%. Ryerson has a consensus price target of $25.00, suggesting a potential upside of 7.20%. Given Constellium’s stronger consensus rating and higher possible upside, equities analysts clearly believe Constellium is more favorable than Ryerson.
Insider and Institutional Ownership
92.6% of Constellium shares are owned by institutional investors. Comparatively, 94.8% of Ryerson shares are owned by institutional investors. 1.5% of Constellium shares are owned by company insiders. Comparatively, 4.0% of Ryerson shares are owned 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.
Summary
Constellium beats Ryerson on 12 of the 14 factors compared between the two stocks.
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.
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.
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