POSCO Holdings Inc. (PKX) vs Ternium S.A. (TX)

POSCO Holdings Inc. and Ternium S.A. are both Steel companies. POSCO Holdings Inc. is the larger, with a market value of $17.0B against $10.9B — 1.6× the size. Ternium S.A. trades at the lower P/E: 15.6× against 21.6×. POSCO Holdings Inc. grew revenue faster over the last twelve months: 2.62% against −1.43%. Ternium S.A. has the higher net margin (4.37% vs 1.94%) and the higher return on invested capital (4.39% vs 1.66%). Both pay a dividend; Ternium S.A. yields more (7.42% vs 2.48%). Across the 22 metrics below, Ternium S.A. leads on 17 and POSCO Holdings Inc. on 5.

Valuation

Metric PKX TX Steel median
P/E 21.57 15.58 21.10
P/S 0.35 0.68 0.70
P/B 0.38 0.65 1.39
Price to free cash flow n/m n/m 23.71
EV/EBITDA 4.83 5.64 10.71
EV/Sales 0.41 0.70 0.85
Earnings yield 4.64% 6.42% 4.56%
Free cash flow yield (9.89%) (4.32%) 0.00%

Profitability

Metric PKX TX Steel median
Gross margin 7.86% 17.75% 13.91%
Operating margin 2.57% 7.45% 4.77%
Net margin 1.94% 4.37% 3.40%
Free cash flow margin (3.42%) (2.94%) 0.00%
Return on equity 2.21% 4.20% 2.21%
Return on assets 1.31% 2.89% 1.83%
Return on invested capital 1.66% 4.39% 2.52%

Growth

Metric PKX TX Steel median
Revenue growth (TTM) 2.62% (1.43%) 11.33%
EPS growth (last fiscal year) (31.90%) 903.70% —
Revenue growth, 5-year CAGR 0.99% 12.31% 6.73%
Net income growth, 5-year CAGR (17.50%) (11.39%) 0.00%

Health

Metric PKX TX Steel median
Debt to equity 0.30 0.18 0.22
Current ratio 1.98 2.58 2.58
Net debt to EBITDA 0.10 (0.41) 0.10

Dividend

Metric PKX TX Steel median
Dividend yield 2.48% 7.42% 2.48%
Payout ratio 0.30 0.44 0.04

Size

Metric PKX TX Steel median
Market cap 16.96b 10.90b 1.46b

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