Analyzing POSCO (PKX) & Its Rivals

POSCO (NYSE: PKX) is one of 28 public companies in the “Steel” industry, but how does it compare to its rivals? We will compare POSCO to similar companies based on the strength of its dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Earnings and Valuation

This table compares POSCO and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
POSCO $51.60 billion $6.26 billion 12.54
POSCO Competitors $7.58 billion $993.35 million 33.46

POSCO has higher revenue and earnings than its rivals. POSCO is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

POSCO has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, POSCO’s rivals have a beta of 1.37, meaning that their average share price is 37% more volatile than the S&P 500.

Insider & Institutional Ownership

5.1% of POSCO shares are owned by institutional investors. Comparatively, 58.0% of shares of all “Steel” companies are owned by institutional investors. 0.0% of POSCO shares are owned by company insiders. Comparatively, 7.5% of shares of all “Steel” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares POSCO and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
POSCO 3.55% 4.74% 2.69%
POSCO Competitors -1,550.64% 3.51% 2.15%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
POSCO 0 2 3 0 2.60
POSCO Competitors 330 960 1011 35 2.32

As a group, “Steel” companies have a potential upside of 13.16%. Given POSCO’s rivals higher probable upside, analysts plainly believe POSCO has less favorable growth aspects than its rivals.

Dividends

POSCO pays an annual dividend of $0.55 per share and has a dividend yield of 0.8%. POSCO pays out 9.9% of its earnings in the form of a dividend. As a group, “Steel” companies pay a dividend yield of 2.2% and pay out 60.2% of their earnings in the form of a dividend.

Summary

POSCO beats its rivals on 8 of the 15 factors compared.

POSCO Company Profile

POSCO is a Korea-based company principally engaged in the manufacture and distribution of steel products. The Company operates in four segments: steel, trading, construction, and others. The steel segment includes production of steel products and sale of such products. The trading segment consists of global trading activities of POSCO Daewoo Corporation, exporting and importing a range of steel products that are both obtained from and supplied to it, as well as between other suppliers and purchasers in Korea and overseas. The construction segment includes planning, designing and construction of industrial plants, civil engineering projects, and commercial and residential buildings, both in Korea and overseas. The others segment includes power generation, liquefied natural gas (LNG) logistics, and network and system integration.

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