POSCO (NYSE: PKX) and Mechel PAO (NYSE:MTL) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Risk & Volatility

POSCO has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Mechel PAO has a beta of -1.09, meaning that its share price is 209% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for POSCO and Mechel PAO, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
POSCO 0 2 3 0 2.60
Mechel PAO 1 0 0 0 1.00

Dividends

POSCO pays an annual dividend of $0.55 per share and has a dividend yield of 0.7%. Mechel PAO does not pay a dividend. POSCO pays out 9.9% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
POSCO 3.60% 4.41% 2.78%
Mechel PAO N/A N/A N/A

Insider & Institutional Ownership

5.1% of POSCO shares are owned by institutional investors. Comparatively, 8.3% of Mechel PAO shares are owned by institutional investors. 0.0% of POSCO shares are owned by insiders. Comparatively, 36.3% of Mechel PAO shares are owned by 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.

Valuation and Earnings

This table compares POSCO and Mechel PAO’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
POSCO $50.56 billion 0.47 $6.13 billion $5.58 13.22
Mechel PAO $9.52 billion 0.12 $2.49 billion N/A N/A

POSCO has higher revenue and earnings than Mechel PAO.

Summary

POSCO beats Mechel PAO on 10 of the 13 factors compared between the two stocks.

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.

Mechel PAO Company Profile

Mechel PAO, formerly Mechel OAO, is a holding company. The Company operates in the mining, steel and power industry segments. Its segments include Steel segment, comprising production and sales of semi-finished steel products, carbon and specialty long products, carbon and stainless flat products, and value-added downstream metal products, including forgings, stampings, and hardware, and ferrosilicon; Mining segment, comprising production and sales of coal (coking and steam), and middlings, coke and chemical products, and iron ore, which supplies raw materials to the Steel and Power segments, and also sells raw materials to third parties, and Power segment, comprising generation and sales of electricity and heat power, which supplies electricity and heat power to the Steel and Mining segments, and also sells a portion of electricity and heat power to third parties. It has freight seaports in Russia on the Sea of Japan and on the Sea of Azov, and a freight river port on the Kama River.

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