Reviewing POSCO (PKX) and Evraz (EVRZF)

POSCO (NYSE: PKX) and Evraz (OTCMKTS:EVRZF) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Profitability

This table compares POSCO and Evraz’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
POSCO 4.57% 5.70% 3.37%
Evraz N/A N/A N/A

Insider and Institutional Ownership

5.2% 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 endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

POSCO has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Evraz has a beta of -3.38, meaning that its share price is 438% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for POSCO and Evraz, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
POSCO 0 1 4 0 2.80
Evraz 0 0 0 0 N/A

Earnings and Valuation

This table compares POSCO and Evraz’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
POSCO $54.59 billion 0.49 $2.48 billion $7.75 10.71
Evraz $10.83 billion 0.89 $681.36 million $0.48 14.14

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.

Dividends

POSCO pays an annual dividend of $2.68 per share and has a dividend yield of 3.2%. Evraz does not pay a dividend. POSCO pays out 34.6% of its earnings in the form of a dividend.

Summary

POSCO beats Evraz on 11 of the 13 factors compared between the two stocks.

About POSCO

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.

About Evraz

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 based in London, the United Kingdom. EVRAZ plc is a subsidiary of Lanebrook Limited.

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