Reliance (NYSE:RS) versus Orbite Aluminae (OTCMKTS:EORBF) Critical Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Reliance	5.23%	10.37%	7.24%
Orbite Aluminae	N/A	N/A	N/A

Insider & Institutional Ownership

79.3% of Reliance shares are owned by institutional investors. 0.4% of Reliance shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Reliance	$13.84 billion	1.25	$875.20 million	$13.68	24.26
Orbite Aluminae	N/A	N/A	N/A	N/A	N/A

Reliance has higher revenue and earnings than Orbite Aluminae.

Risk and Volatility

Reliance has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Orbite Aluminae has a beta of -4.54, indicating that its stock price is 554% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Reliance and Orbite Aluminae, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reliance	1	2	3	0	2.33
Orbite Aluminae	0	0	0	0	0.00

Reliance currently has a consensus price target of $317.25, suggesting a potential downside of 4.40%. Given Orbite Aluminae’s higher probable upside, analysts clearly believe Orbite Aluminae is more favorable than Reliance.

Summary

Reliance beats Orbite Aluminae on 9 of the 10 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 Orbite Aluminae

Orbite Technologies Inc. operates as a clean technology based mineral-processing and resource development company in Canada. It produces high-purity alumina, silica, hematite, magnesium oxide, titanium oxide, smelter-grade alumina, and rare earth and rare metal oxides from various feedstocks, including red mud, fly-ash, aluminous clays, mine tailings, bauxite, and kaolin clay, as well as serpentine residues from chrysotile processing sites. The company owns 100% interest in 99 mineral claims totaling approximately 55 square kilometers, as well as 1 mining lease of 98.5 hectares at a site near Grande-Vallée, Québec. It also owns 100% interest in 138 mineral claims covering approximately 78.4 square kilometers at sites near Rimouski and Cap-Chat, Québec. The company was formerly known as Orbite Aluminae Inc. and changed its name to Orbite Technologies Inc. in June 2015. Orbite Technologies Inc. was incorporated in 1983 and is headquartered in Laval, Canada.