SunCoke Energy (NYSE: SXC) and POSCO (NYSE:PKX) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitabiliy, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
POSCO pays an annual dividend of $0.55 per share and has a dividend yield of 0.9%. SunCoke Energy does not pay a dividend. POSCO pays out 11.1% of its earnings in the form of a dividend. SunCoke Energy has increased its dividend for 2 consecutive years.
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|
Insider & Institutional Ownership
97.4% of SunCoke Energy shares are held by institutional investors. Comparatively, 6.1% of POSCO shares are held by institutional investors. 3.9% of SunCoke Energy shares are held by insiders. Comparatively, 0.0% of POSCO shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent ratings and target prices for SunCoke Energy and POSCO, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SunCoke Energy presently has a consensus price target of $11.00, suggesting a potential upside of 11.79%. Given SunCoke Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SunCoke Energy is more favorable than POSCO.
Risk and Volatility
SunCoke Energy has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, POSCO has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
Earnings & Valuation
This table compares SunCoke Energy and POSCO’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|SunCoke Energy||$1.22 billion||0.52||$227.30 million||$0.31||31.74|
|POSCO||$49.18 billion||0.39||$5.90 billion||$4.97||12.05|
POSCO has higher revenue and earnings than SunCoke Energy. POSCO is trading at a lower price-to-earnings ratio than SunCoke Energy, indicating that it is currently the more affordable of the two stocks.
SunCoke Energy beats POSCO on 9 of the 17 factors compared between the two stocks.
About SunCoke Energy
SunCoke Energy, Inc. is a producer of coke in the Americas. The Company’s segments include Domestic Coke, Brazil Coke, Coal Logistics, and Corporate and Other. The Domestic Coke segment consists of its Jewell Coke Company, L.P. (Jewell), Indiana Harbor Coke Company (Indiana Harbor), Haverhill Coke Company LLC (Haverhill), Gateway Energy and Coke Company, LLC (Granite City) and Middletown Coke Company, LLC (Middletown) cokemaking and heat recovery operations. The Brazil Coke segment consists of its operations in Vitoria, Brazil, where the Company operate a cokemaking facility, ArcelorMittal Brasil S.A. The Coal Logistics segment consists of its Convent Marine Terminal (CMT), Kanawha River Terminals, LLC (KRT), SunCoke Lake Terminal, LLC (Lake Terminal) and Dismal River Terminal, LLC (DRT) coal handling and/or mixing service operations. It designs, develops, builds, owns and operates five cokemaking facilities in the United States, as of December 31, 2016.
POSCO is an integrated steel producer. The Company operates in four segments: steel, trading, engineering and construction, and others. The steel segment includes production of steel products and sale of such products. The trading segment consists of global trading activities of POSCO Daewoo Corporation, exporting and importing a range of steel products that are both obtained from and supplied to it, as well as between other suppliers and purchasers in Korea and overseas. The construction segment includes planning, designing and construction of industrial plants, civil engineering projects, and commercial and residential buildings, both in Korea and overseas. The others segment includes power generation, liquefied natural gas (LNG) logistics, and network and system integration. It produces approximately 42.0 million tons of crude steel, a portion of which is produced at Pohang Works and Gwangyang Works.
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