Analyzing Reliance (NYSE:RS) and China Natural Resources (NASDAQ:CHNR)

Reliance (NYSE:RS) and China Natural Resources (NASDAQ:CHNR) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Profitability

This table compares Reliance and China Natural Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Reliance	5.39%	10.48%	7.37%
China Natural Resources	N/A	N/A	N/A

Volatility and Risk

Reliance has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. Comparatively, China Natural Resources has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Valuation & Earnings

This table compares Reliance and China Natural Resources”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	1.12	$875.20 million	$13.70	21.46
China Natural Resources	$2.94 million	1.56	-$430,000.00	N/A	N/A

Reliance has higher revenue and earnings than China Natural Resources.

Analyst Ratings

This is a breakdown of current recommendations for Reliance and China Natural Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Reliance	0	4	2	0	2.33
China Natural Resources	0	0	0	0	0.00

Reliance presently has a consensus price target of $323.50, indicating a potential upside of 10.02%. Given Reliance’s stronger consensus rating and higher probable upside, research analysts clearly believe Reliance is more favorable than China Natural Resources.

Institutional and Insider Ownership

79.3% of Reliance shares are held by institutional investors. Comparatively, 0.0% of China Natural Resources shares are held by institutional investors. 0.4% of Reliance shares are held by company insiders. Comparatively, 23.2% of China Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Reliance beats China Natural Resources on 10 of the 12 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 China Natural Resources

China Natural Resources, Inc., through its subsidiaries, engages in the exploration and mining of metal properties in the People's Republic of China. It explores for lead, silver, and other nonferrous metals. The company holds interest in the Moruogu Tong mine that covers an area of 7.81 square kilometers located in Bayannaoer City, Inner Mongolia. It also offers equipment for rural wastewater treatment; and engineering. The company was incorporated in 1993 and is headquartered in Sheung Wan, Hong Kong. China Natural Resources, Inc. operates as a subsidiary of Feishang Industrial Group Co., Ltd.