Buenaventura Mining (NYSE:BVN) vs. POSCO (NYSE:PKX) Head to Head Survey

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

Dividends

POSCO pays an annual dividend of $1.15 per share and has a dividend yield of 2.1%. Buenaventura Mining pays an annual dividend of $1.09 per share and has a dividend yield of 3.5%. POSCO pays out 43.6% of its earnings in the form of a dividend. Buenaventura Mining pays out 24.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Buenaventura Mining is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
POSCO	1.79%	1.99%	1.18%
Buenaventura Mining	50.88%	26.53%	18.88%

Analyst Ratings

This is a summary of recent recommendations and price targets for POSCO and Buenaventura Mining, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POSCO	1	1	1	0	2.00
Buenaventura Mining	1	1	2	0	2.25

Buenaventura Mining has a consensus target price of $37.25, suggesting a potential upside of 18.20%. Given Buenaventura Mining’s stronger consensus rating and higher probable upside, analysts clearly believe Buenaventura Mining is more favorable than POSCO.

Risk and Volatility

POSCO has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, Buenaventura Mining has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Valuation and Earnings

This table compares POSCO and Buenaventura Mining”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POSCO	$48.64 billion	0.35	$483.48 million	$2.64	21.23
Buenaventura Mining	$1.73 billion	4.62	$782.15 million	$4.42	7.13

Buenaventura Mining has lower revenue, but higher earnings than POSCO. Buenaventura Mining is trading at a lower price-to-earnings ratio than POSCO, indicating that it is currently the more affordable of the two stocks.

Summary

Buenaventura Mining beats POSCO on 11 of the 14 factors compared between the two stocks.

About POSCO

POSCO Holdings Inc., together with its subsidiaries, operates as an integrated steel producer in Korea and internationally. It operates through six segments: Steel, Trading, Construction, Logistics and Others, Green Materials and Energy, and Others. The company engages in the production, import, sale, and export of steel products, such as hot and cold rolled steel, stainless steel, plates, wire rods, and silicon steel sheets, as well as pig iron, billets, blooms, and slabs; trading of steel and raw materials, textiles, agricultural commodities, and other goods; natural resources development and power generation activities; and planning, designing, and construction of industrial plants, civil engineering projects, and commercial and residential buildings. It is also involved in the manufacture and sale of various energy-related and other industrial materials, including anode and cathode materials for rechargeable batteries; investment business; and provision of alternative environmentally-friendly energy solutions, as well as information technology and operational technology, and integrated logistics services. POSCO Holdings Inc. was incorporated in 1968 and is based in Seoul, South Korea.

About Buenaventura Mining

Compañía de Minas Buenaventura S.A.A. engages in the exploration, development, construction, and operation of mineral processing business. The company explores for gold, silver, lead, zinc, and copper metals. It operates operating mining units, including Tambomayo located in the Caylloma province, Orcopampa Unit located in the province of Castilla, Uchucchacua located in province of Oyón, Julcani located in province of Angaraes, Peru, as well as San Gabrie located in the province of General Sánchez Cerro, in the Moquegua region. The company owns interests in Colquijirca, La Zanja, Cerro Verde, El Brocal, Coimolache, Yumpaq, San Gregorio mines, and Trapiche mining unit. In addition, it produces monohydrate manganese sulphate; and operates hydroelectric power plants. Compañía de Minas Buenaventura S.A.A. was incorporated in 1953 and is based in Lima, Peru.