Constellium SE CSTM and Ryerson Holding Corporation RYZ are leading players in the aluminum industry, supported by global operations and diversified business portfolios. With aluminum prices remaining elevated amid global economic uncertainty and persistent trade tensions, comparing these companies can help investors identify opportunities within the Zacks Metal Products - Distribution industry.
Aluminum has become an attractive investment due to growing demand from electric vehicles, increased use of recycled aluminum and advancements in rechargeable batteries. Its demand is also rising as industries focus more on sustainability and efficiency. In addition, the recovery in global air travel has led aircraft manufacturers to increase production, driving higher demand for aluminum used in aircraft parts such as fuselages and wings.
But which of these two stocks is better positioned to capitalize on these trends? Let’s compare their fundamentals to find out.
The Case for Constellium
Constellium’s Packaging & Automotive Rolled Products segment remains a key growth driver. In the second quarter of 2026, the segment’s revenues increased 36% year over year to $1.7 billion, driven by higher metal prices. It also benefited from supply shortages of automotive rolled products in North America, which supported the overall performance.
Also, strength in the Aerospace & Transportation segment is aiding CSTM. The segment’s shipments increased 21% to 65 thousand metric tons in the second quarter of 2026, driven by higher shipments of aerospace and transportation, industry and defense (TID) rolled products. Revenues from the segment increased 38% to $680 million, supported by strong shipments and higher metal prices.
The company’s Automotive Structures & Industry segment’s revenues grew 9% year over year to $458 million in the second quarter of 2026, supported by higher metal prices. Stable shipments compared with the prior-year quarter also supported the segment’s performance.
CSTM also remains committed to rewarding its shareholders handsomely through share buybacks. For instance, it generated a solid free cash flow of $95 million in the first six months of 2026 and returned approximately $48 million to shareholders through share repurchases.
It’s worth noting that in March 2026, the company’s board authorized a new share repurchase program of up to $300 million. The program became effective on May 21, 2026, and will remain in effect till Dec. 31, 2028.
However, Constellium has been witnessing the impacts of escalating costs and expenses over time. In the second quarter of 2026, the cost of sales increased 23.3% year over year. Selling and administrative expenses also rose 14.8% in the quarter. The increase in operating expenses, if not controlled, might adversely impact the company’s margins in the quarters ahead.
The Case for Ryerson
Ryerson benefits from a diversified business structure that helps offset weakness in one end market with strength in others. The company is well-positioned to benefit from rising infrastructure spending, reshoring trends, increased fabrication outsourcing and ongoing manufacturing supply-chain restructuring. Also, its investments in expanding its non-ferrous polishing, buffing and grinding capabilities are expected to bolster the company's long-term position in the market.
A key growth driver for Ryerson remains its aluminum product line. Aluminum prices and Midwest premiums increased during the second quarter of 2026, primarily due to supply disruptions in the Middle East. RYZ’s Aluminum shipments increased 10% year over year to 55,000 tons during the quarter. Revenues from the product line surged 41.8% to $434 million, aided by higher metal prices.
In the same period, shipments from both the carbon steel and stainless steel product lines increased 67% and 45%, year over year, respectively. Also, revenues from these product lines grew 89.3% and 63.8%, respectively, due to an increase in average selling prices.
In the second quarter, Ryerson’s total revenues increased 71.6% year over year to $2 billion, while total shipments rose 60.5% to 804,000 tons. For the third quarter of 2026, the company expects net sales of $1.87-$1.95 billion. Average selling prices are expected to remain flat or increase up to 2%.
However, the company’s warehousing, delivery, selling, general and administrative expenses increased 58.7% year over year to $320.3 million in the second quarter. The increase mainly reflected the addition of Olympic Steel’s operating expenses and higher costs associated with the expanded revenue and shipment base.
Also, high debt levels remain a concern for Ryerson. It exited the second quarter of 2026 with total debt of $955 million and net debt of $913 million, up $47 million and $30 million, respectively, from the first quarter of 2026. The increase reflected higher working capital requirements associated with increased revenues.
How Does the Zacks Consensus Estimate Compare for CSTM & RYZ?
The Zacks Consensus Estimate for CSTM’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 30.6% and 84.9%, respectively. The company’s EPS estimates for 2026 have increased 6.3% over the past 30 days.
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While the consensus estimate for RYZ’s 2026 sales implies year-over-year growth of 53.9%, the same for EPS indicates an increase of 170.5%. The company’s EPS estimates remained steady over the past 30 days for 2026.
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Price Performance and Valuation of CSTM & RYZ
In the past six months, Constellium’s shares have surged 20.5%, while Ryerson stock has declined 8.6%.
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Constellium is trading at a forward 12-month price-to-earnings ratio of 9.42X compared with its median of 9.99X over the last five years. Ryerson is trading at a forward 12-month price-to-earnings ratio of 15.68X, above its median of 10.44X over the last five years.
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Final Take
Constellium continues to witness strength across its key business segments, supported by favorable aluminum pricing. Also, its commitment to returning capital to shareholders augurs well for its long-term growth prospects. However, rising operating costs remain a concern for its margins.
In contrast, Ryerson is benefiting from its diversified business model, robust momentum in its aluminum product portfolio and improving demand across steel categories, supported by higher metal prices. The company is well-positioned for continued growth, driven by healthy shipment volumes. However, increasing expenses and elevated debt levels continue to pose risks to its financial performance.
Given these factors, CSTM seems a better pick for investors than RYZ currently. While Constellium carries a Zacks Rank #3 (Hold), RYZ currently has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
