Reviewing POSCO (NYSE:PKX) and Metallus (NYSE:MTUS)

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

Profitability

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

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

Risk & Volatility

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

Institutional and Insider Ownership

77.6% of Metallus shares are owned by institutional investors. 0.0% of POSCO shares are owned by insiders. Comparatively, 3.7% of Metallus shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POSCO	$59.08 billion	N/A	$1.36 billion	$4.76	14.88
Metallus	$1.36 billion	0.68	$69.40 million	$1.46	14.50

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 ratings for POSCO and Metallus, as provided by MarketBeat.com.

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

Summary

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

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.

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.