RS vs WOR

Key Takeaways

• Reliance, Inc. (RS) is North America's largest metals service center company, with a market capitalization of approximately $20.8 billion and record tons sold of 6.4 million in fiscal 2025, reflecting sustained market share gains.
• Worthington Enterprises, Inc. (WOR) has transformed through strategic acquisitions such as Elgen Manufacturing and LSI Group, driving fiscal 2026 revenue growth of 20% to $1.38 billion while expanding into high-growth verticals like data center cooling infrastructure.
• RS has delivered a year-to-date price gain exceeding 42%, supported by strong demand across non-residential construction, infrastructure, and defense-related end markets, and a 66-year track record of uninterrupted dividends.
• WOR has posted a more modest year-to-date return of approximately 11%, with its stock trading well below its 52-week high, and recently faced headwinds including removal from the Russell 2000 Dynamic Index and an earnings miss in its fiscal fourth quarter.
• Both companies operate in metal-centric industrial markets, yet their scale, end-market exposure, and recent price trajectories diverge significantly, offering distinct risk-return profiles.

Introduction

Investors navigating the industrial and metals sector often encounter two distinctly positioned companies: RS (Reliance, Inc.) and WOR (Worthington Enterprises, Inc.). While both are rooted in metal products and manufacturing, their scale, business models, and recent market performance diverge considerably. Reliance operates as a massive metals service center and distributor serving over 125,000 customers across diverse end markets, whereas Worthington focuses on branded consumer and building products through a more concentrated manufacturing portfolio. This comparison is particularly relevant for traders and investors evaluating relative strength, growth trajectories, and risk exposure in the industrial sector amid shifting trade policy, infrastructure spending trends, and evolving end-market demand.

RS Overview and Recent Performance

RS, headquartered in Scottsdale, Arizona, is the largest metals service center company in North America. Founded in 1939, Reliance operates through a network of approximately 310 locations across 41 U.S. states and 10 countries internationally, distributing over 100,000 metal products and providing value-added processing services. The company's core competitive advantage lies in its small-order, quick-turnaround model — with roughly 40% of orders delivered within 24 hours and an average order size of approximately $3,120 in 2025.

In recent market activity, RS has demonstrated notable price strength, with shares gaining more than 42% year-to-date and trading near the $404 level. The company reported full-year 2025 net sales of $14.3 billion, up 3.3% year-over-year, and record annual tons sold of 6.4 million. Its U.S. market share expanded to approximately 17%, up from 15% in 2024. Reliance generated $831 million in operating cash flow for 2025 and returned $849 million to stockholders through dividends and share repurchases. The company raised its quarterly dividend by 4.2% to $1.25 per share and has paid uninterrupted dividends for 66 consecutive years. Non-GAAP FIFO (First-In, First-Out) earnings per diluted share grew 13.5% in 2025, reflecting underlying operating strength despite LIFO (Last-In, First-Out) accounting headwinds from rising metal costs.

WOR Overview and Recent Performance

WOR, headquartered in Columbus, Ohio, is an industrial manufacturing company operating through two segments: Consumer Products and Building Products. The Consumer Products segment produces branded goods including propane cylinders, handheld torches, hand tools, and drywall tools sold through mass merchandisers and retailers. The Building Products segment provides pressurized containment solutions, refrigerant gas cylinders, water tanks, and ceiling suspension systems. Founded in 1955, the company underwent significant transformation following its separation from its former steel processing business, emerging as a more focused enterprise centered on branded manufactured products.

In recent weeks, WOR has traded around $56–$57 per share, well below its 52-week high of approximately $67.80 and near its 200-day moving average of roughly $55. The company reported fiscal 2026 full-year results (ended May 31, 2026) with revenue of $1.38 billion, a 20% increase driven by organic growth and acquisitions, and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $295.8 million, up 12%. Adjusted EPS of $3.37 grew 9% from the prior year. However, fourth-quarter results came in below analyst expectations, with adjusted EPS of $0.97 missing consensus estimates of $1.04. The company has also faced technical headwinds, including its removal from the Russell 2000 Dynamic Index in late June 2026. On the positive side, free cash flow reached $170 million for the fiscal year, and management highlighted expanding opportunities in data center liquid-cooling infrastructure as a multiyear growth catalyst.

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Head-to-Head Comparison

The most striking contrast between RS and WOR is scale. Reliance generated $14.3 billion in annual revenue compared to Worthington's $1.38 billion — a roughly tenfold difference. This scale gives Reliance a broader diversification advantage: it serves non-residential construction, manufacturing, aerospace, automotive, semiconductor, and energy markets simultaneously, with no single end market dominating. Worthington, by comparison, is more narrowly exposed to residential and commercial construction cycles through its Building Products segment, plus consumer discretionary spending patterns through its Consumer Products segment.

In terms of growth drivers, Reliance has demonstrated consistent market share capture, outperforming industry shipment trends by more than seven percentage points in 2025. Its growth is largely organic and tied to its ability to win small, service-intensive orders. Worthington's growth has been more acquisition-driven, with the Elgen and LSI acquisitions contributing meaningfully to its 20% revenue increase in fiscal 2026. While this M&A (Mergers and Acquisitions) strategy broadens Worthington's product portfolio, it also introduces integration risk and near-term margin pressure.

From a momentum perspective, RS has decisively outperformed in 2026. Its year-to-date gain of more than 42% contrasts with WOR's gain of approximately 11%. Reliance benefits from strong demand in infrastructure, data centers, and defense markets, while Worthington has faced a more cautious consumer environment and a difficult comparison in its cooling products business tied to the A2L refrigerant transition. Both companies maintain disciplined balance sheets, with net debt-to-EBITDA ratios below 1x for Reliance and leverage ratios similarly conservative for Worthington.

Risk factors differ meaningfully. Reliance faces exposure to metals price volatility — particularly aluminum and carbon steel — and trade policy uncertainty that can compress gross margins via LIFO accounting charges. Worthington faces risks tied to consumer spending sensitivity, acquisition integration execution, and its reliance on a smaller set of end markets. Both companies are subject to broader macroeconomic cycles, but Reliance's scale and product diversity may provide a more durable buffer during downturns.

Tickeron AI Verdict

Based on observable trend consistency, relative momentum, and market positioning, Tickeron's AI analysis would likely favor RS in the current market environment. Reliance's combination of scale-driven competitive advantage, record shipment volumes, expanding market share, 66-year dividend track record, and sustained upward price momentum in 2026 creates a favorable probability profile. The company's diversified end-market exposure and strong free cash flow generation provide additional stability signals that algorithmic models tend to reward. While WOR offers an intriguing turnaround and growth story — particularly with its data center infrastructure opportunity and acquisition-fueled expansion — the stock's weaker recent price performance, earnings miss, and index removal introduce near-term uncertainty. An AI-driven framework would likely view Reliance as the higher-probability candidate for trend continuation, while acknowledging that Worthington's valuation discount relative to analyst price targets could present a distinct opportunity for investors with a longer time horizon and higher tolerance for volatility.

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