POSCO Holdings Inc. (PKX) vs Steel Dynamics, Inc. (STLD)

POSCO Holdings Inc. and Steel Dynamics, Inc. are both Steel companies. Steel Dynamics, Inc. is the larger, with a market value of $33.7B against $17.0B — 2.0× the size. Steel Dynamics, Inc. trades at the lower P/E: 21.1× against 21.6×. Steel Dynamics, Inc. grew revenue faster over the last twelve months: 19.8% against 2.62%. Steel Dynamics, Inc. has the higher net margin (7.83% vs 1.94%) and the higher return on invested capital (10.0% vs 1.66%). Both pay a dividend; POSCO Holdings Inc. yields more (2.48% vs 1.44%). Across the 22 metrics below, Steel Dynamics, Inc. leads on 15 and POSCO Holdings Inc. on 7.

Valuation

Metric PKX STLD Steel median
P/E 21.57 21.10 21.10
P/S 0.35 1.64 0.70
P/B 0.38 3.65 1.39
Price to free cash flow n/m 35.24 23.71
EV/EBITDA 4.83 13.94 10.71
EV/Sales 0.41 1.82 0.85
Earnings yield 4.64% 4.74% 4.56%
Free cash flow yield (9.89%) 2.84% 0.00%

Profitability

Metric PKX STLD Steel median
Gross margin 7.86% 14.65% 13.91%
Operating margin 2.57% 10.01% 4.77%
Net margin 1.94% 7.83% 3.40%
Free cash flow margin (3.42%) 4.65% 0.00%
Return on equity 2.21% 17.94% 2.21%
Return on assets 1.31% 9.84% 1.83%
Return on invested capital 1.66% 10.01% 2.52%

Growth

Metric PKX STLD Steel median
Revenue growth (TTM) 2.62% 19.77% 11.33%
EPS growth (last fiscal year) (31.90%) (18.80%) —
Revenue growth, 5-year CAGR 0.99% 13.61% 6.73%
Net income growth, 5-year CAGR (17.50%) 16.57% 0.00%

Health

Metric PKX STLD Steel median
Debt to equity 0.30 0.45 0.22
Current ratio 1.98 3.18 2.58
Net debt to EBITDA 0.10 1.70 0.10

Dividend

Metric PKX STLD Steel median
Dividend yield 2.48% 1.44% 2.48%
Payout ratio 0.30 0.09 0.04

Size

Metric PKX STLD Steel median
Market cap 16.96b 33.71b 1.46b

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