Analyzing Dynamic Materials Corp. (BOOM) & POSCO (PKX)
Dynamic Materials Corp. (NASDAQ: BOOM) and POSCO (NYSE:PKX) are both industrial products companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.
Dynamic Materials Corp. pays an annual dividend of $0.08 per share and has a dividend yield of 0.6%. POSCO pays an annual dividend of $0.55 per share and has a dividend yield of 0.7%. Dynamic Materials Corp. pays out -14.0% of its earnings in the form of a dividend. POSCO pays out 9.9% 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.
Volatility & Risk
Dynamic Materials Corp. has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, POSCO has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.
This is a summary of current ratings for Dynamic Materials Corp. and POSCO, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dynamic Materials Corp.||0||0||1||0||3.00|
Dynamic Materials Corp. currently has a consensus price target of $19.00, indicating a potential upside of 46.72%. Given Dynamic Materials Corp.’s stronger consensus rating and higher possible upside, equities analysts clearly believe Dynamic Materials Corp. is more favorable than POSCO.
Institutional and Insider Ownership
86.0% of Dynamic Materials Corp. shares are owned by institutional investors. Comparatively, 5.1% of POSCO shares are owned by institutional investors. 5.1% of Dynamic Materials Corp. 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, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Dynamic Materials Corp. and POSCO’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dynamic Materials Corp.||$162.88 million||1.17||$7.00 million||($0.57)||-22.72|
|POSCO||$50.56 billion||0.47||$6.13 billion||$5.58||13.22|
POSCO has higher revenue and earnings than Dynamic Materials Corp.. Dynamic Materials Corp. is trading at a lower price-to-earnings ratio than POSCO, indicating that it is currently the more affordable of the two stocks.
This table compares Dynamic Materials Corp. and POSCO’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dynamic Materials Corp.||-5.01%||-6.38%||-4.39%|
POSCO beats Dynamic Materials Corp. on 9 of the 15 factors compared between the two stocks.
About Dynamic Materials Corp.
DMC Global Inc., formerly Dynamic Materials Corporation, is a diversified technology company. The Company operates a family of technical product and process businesses serving the energy, industrial and infrastructure markets. The Company’s businesses operate through an international network of manufacturing, distribution and sales facilities. The Company’s segments are NobelClad and DynaEnergetics. The NobelClad segment is engaged in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. It owns explosive metalworking and metallic processes, and registered trademarks, including Detaclad, Detacouple, EFTEK, ETJ 2000 and NOBELCLAD.
POSCO is a Korea-based company principally engaged in the manufacture and distribution of steel products. The Company operates in four segments: steel, trading, 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.
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