POSCO (NYSE: PKX) and EVRAZ (OTCMKTS:EVRZF) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.
Volatility & Risk
POSCO has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, EVRAZ has a beta of -3.37, indicating that its stock price is 437% less volatile than the S&P 500.
This table compares POSCO and EVRAZ’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
5.4% of POSCO shares are owned by institutional investors. 0.0% of POSCO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings for POSCO and EVRAZ, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Earnings & Valuation
This table compares POSCO and EVRAZ’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|POSCO||$54.59 billion||0.50||$2.48 billion||$7.75||10.06|
|EVRAZ||$10.83 billion||0.85||$681.36 million||$0.48||13.50|
POSCO has higher revenue and earnings than EVRAZ. POSCO is trading at a lower price-to-earnings ratio than EVRAZ, indicating that it is currently the more affordable of the two stocks.
POSCO pays an annual dividend of $1.12 per share and has a dividend yield of 1.4%. EVRAZ does not pay a dividend. POSCO pays out 14.5% of its earnings in the form of a dividend.
POSCO beats EVRAZ on 11 of the 13 factors compared between the two stocks.
POSCO manufactures and sells steel rolled products and plates in South Korea and internationally. It operates through four segments: Steel, Construction, Trading, and Others. The company offers hot and cold rolled steel, steel plates, wire rods, galvanized and electrical galvanized steel, electrical and stainless steel, automotive materials, titanium, magnesium, and aluminum-plated products. It also designs and constructs industrial plants, civil engineering projects, and commercial and residential buildings; exports and imports steel products and raw materials; and produces liquefied natural gas, power, and refuse derived fuel, as well as provides network and system integration, and logistics services. In addition, the company engages in the engineering and construction; coated steel, zinc relief, and components manufacturing; computer hardware and software distribution; economic research and consulting; business facility maintenance; architecture and consulting; investment in venture, energy, and bio tech companies; electronic commerce; refractories and quicklime manufacturing and sales; transporting and warehousing; real estate rental and sale; house and train manufacturing and management; education and real estate business; hotel; and stem cell medicine development activities. Further, it engages in the non-residential building rental; secondary and storage battery and textile manufacturing; resource development; iron ore and coal sales; and mine development. Additionally, the company engages in loading and unloading; IT service and DVR; electric control engineering; forest resources development; human resource; wastewater treatment operation and maintenance; crude oil and natural gas mining; refractory materials sales and furnace maintenance; rice processing; grain sales; petroleum gas extraction; private equity trust; packing materials manufacturing; and social enterprise businesses. POSCO was founded in 1968 and is headquartered in Pohang, South Korea.
EVRAZ plc, together with its subsidiaries, produces and distributes steel and related products. The company operates through four segments: Steel; Steel, North America; Coal; and Other Operations. Its products include construction products, industrial products, railway products, vanadium products, and pipes, as well as raw materials, such as iron ore, coal, and limestone products. The company is involved in the extraction of vanadium ore; iron ore mining and enrichment; and coal mining and enrichment, as well as energy-generation, shipping, and railway transportation businesses. It has operations in the Commonwealth of Independent States, America, Asia, Europe, Africa, and internationally. The company was founded in 1992 and is headquartered in Moscow, Russia. EVRAZ plc is a subsidiary of Lanebrook Limited.
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