Financial Comparison: Angang Steel (OTCMKTS:ANGGF) and POSCO (NYSE:PKX)

POSCO (NYSE:PKX) and Angang Steel (OTCMKTS:ANGGF) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for POSCO and Angang Steel, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POSCO	1	2	0	0	1.67
Angang Steel	0	1	1	0	2.50

Valuation & Earnings

This table compares POSCO and Angang Steel’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POSCO	$59.08 billion	N/A	$1.36 billion	$4.76	14.39
Angang Steel	N/A	N/A	N/A	N/A	N/A

POSCO has higher revenue and earnings than Angang Steel.

Profitability

This table compares POSCO and Angang Steel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
POSCO	2.45%	3.02%	1.76%
Angang Steel	N/A	N/A	N/A

Institutional & Insider Ownership

4.3% of Angang Steel shares are owned by institutional investors. 0.0% of POSCO shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

POSCO beats Angang Steel on 5 of the 8 factors compared between the two stocks.

About POSCO

POSCO Holdings Inc., together with its subsidiaries, manufactures and sells iron and steel rolled products in South Korea and internationally. It operates in two segments Steel and Others. The company offers hot and cold rolled steel, steel plates, wire rods, galvanized steel, electrical steel, stainless steel, and titanium. It is also involved in the e-commerce business; processing and sale of steel by-products; and provision of business support, and office administration and management consulting services. The company serves automotive, construction, shipbuilding, energy, home appliances, and industrial machinery applications. POSCO Holdings Inc. was incorporated in 1968 and is headquartered in Pohang, South Korea.

About Angang Steel

Angang Steel Company Limited engages in the production, processing, and sale of steel products in the People's Republic of China and internationally. Its principal products include hot rolled sheets, medium and thick plates, cold rolled sheets, galvanized steel sheets, color coating plates, cold rolled silicon steel, heavy rails and sections, seamless steel pipes and wire rods, and other products. The company also engages in ferrous metal smelting and steel pressing and processing activities. In addition, it sells metal materials and products, and building materials, etc.; provides wholesale and retail purchasing services; develops metallurgy and related materials and equipment; and purchases and sells metal and other materials, as well as imports, exports, wholesales, and retails technology products. Further, the company engages in the purification of cooking gas; production of coal products and dissolved acetylene; and sale of compressed and liquefied gas. Additionally, it engages in e-commerce and technology consulting, technology development, technology services, technology transfer, and value-added telecommunications services; sales of equipment for gas and liquid separation and purification; supply chain financial services; hazardous chemicals; processing and sale of steel rolling and steel coils, and steel trade activities. Its products are used in various industries, such as machinery, metallurgy, petroleum, chemical industry, coal, electricity, railway, ship, automobile, construction, home appliances, and aviation industries. The company also exports its products. The company was formerly known as Angang New Steel Company Limited and changed its name to Angang Steel Company Limited in June 2006. Angang Steel Company Limited was founded in 1997 and is headquartered in Anshan, China. Angang Steel Company Limited is a subsidiary of Anshan Iron & Steel Co. Ltd.