SunCoke Energy (NYSE:SXC) versus POSCO (NYSE:PKX) Head to Head Comparison

SunCoke Energy (NYSE:SXC) and POSCO (NYSE:PKX) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SunCoke Energy	-2.91%	5.68%	2.01%
POSCO	1.49%	1.68%	0.99%

Analyst Ratings

This is a summary of recent ratings and target prices for SunCoke Energy and POSCO, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunCoke Energy	0	2	0	0	2.00
POSCO	1	0	1	1	2.67

SunCoke Energy presently has a consensus price target of $11.00, indicating a potential upside of 3.14%. Given SunCoke Energy’s higher possible upside, analysts plainly believe SunCoke Energy is more favorable than POSCO.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunCoke Energy	$1.90 billion	0.48	-$44.20 million	($0.65)	-16.41
POSCO	$48.64 billion	0.31	$483.48 million	$2.26	21.92

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

Insider and Institutional Ownership

90.4% of SunCoke Energy shares are owned by institutional investors. 1.7% of SunCoke Energy shares are owned by insiders. Comparatively, 0.0% of POSCO shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

SunCoke Energy pays an annual dividend of $0.48 per share and has a dividend yield of 4.5%. POSCO pays an annual dividend of $1.15 per share and has a dividend yield of 2.3%. SunCoke Energy pays out -73.8% of its earnings in the form of a dividend. POSCO pays out 50.9% 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. SunCoke Energy has increased its dividend for 4 consecutive years. SunCoke Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

SunCoke Energy has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, POSCO has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500.

About SunCoke Energy

SunCoke Energy, Inc. produces coke, a key fuel and carbon input used in blast furnace steelmaking. Its heat-recovery cokemaking process captures heat generated during production for use in generating steam and electricity. The company also provides coal-handling and logistics services, including coal blending, transportation, and the operation of export and transloading terminals. These services support the movement of coal and other bulk materials for steelmakers and other customers. SunCoke was spun off from Sunoco in 2012.

About POSCO

POSCO, now organized under POSCO Holdings Inc., is a South Korean steel and materials group. Its principal steelmaking business produces a range of products, including hot- and cold-rolled steel, stainless steel, plates, wire rod and electrical steel. POSCO steel products serve industries such as automotive, construction, shipbuilding, energy and manufacturing. The company operates internationally, supplying customers in South Korea and overseas through its production facilities and global sales network.