Financial Analysis: POSCO (NYSE:PKX) & Metallus (NYSE:MTUS)

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

Insider & Institutional Ownership

77.6% of Metallus shares are owned by institutional investors. 3.7% of Metallus shares are owned by company insiders. Comparatively, 0.0% of POSCO shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

Metallus has a beta of 1.52, meaning that its share price is 52% more volatile than the S&P 500. Comparatively, POSCO has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Metallus	5.09%	12.54%	7.79%
POSCO	2.45%	3.02%	1.76%

Valuation and Earnings

This table compares Metallus and POSCO’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metallus	$1.36 billion	0.69	$69.40 million	$1.46	14.73
POSCO	$59.08 billion	N/A	$1.36 billion	$4.76	15.57

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

Analyst Ratings

This is a summary of recent recommendations for Metallus and POSCO, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metallus	0	0	0	0	N/A
POSCO	1	2	0	0	1.67

Summary

Metallus beats POSCO on 6 of the 10 factors compared between the two stocks.

About Metallus

Metallus Inc. manufactures and sells alloy steel, and carbon and micro-alloy steel products in the United States and internationally. The company offers special bar quality (SBQ) bars, seamless mechanical tubes, precision steel components, and billets that are used in gears, hubs, axles, crankshafts and motor shafts, oil country drill pipes, bits and collars, bearing races and rolling elements, bushings, fuel injectors, wind energy shafts, anti-friction bearings, artillery and mortar bodies, and other applications. It also provides custom-make precision steel components. It offers its products and services to the automotive, energy, industrial equipment, mining, construction, rail, aerospace and defense, heavy truck, agriculture, and power generation sectors. The company was formerly known as TimkenSteel Corporation and changed its name to Metallus Inc. in February 2024. Metallus Inc. was founded in 1899 and is headquartered in Canton, Ohio.

About POSCO

POSCO Holdings Inc., together with its subsidiaries, manufactures and sells iron and steel rolled products in South Korea and internationally. It operates in two segments Steel and Others. The company offers hot and cold rolled steel, steel plates, wire rods, galvanized steel, electrical steel, stainless steel, and titanium. It is also involved in the e-commerce business; processing and sale of steel by-products; and provision of business support, and office administration and management consulting services. The company serves automotive, construction, shipbuilding, energy, home appliances, and industrial machinery applications. POSCO Holdings Inc. was incorporated in 1968 and is headquartered in Pohang, South Korea.