Critical Review: POSCO (NYSE:PKX) versus Vox Royalty (NASDAQ:VOXR)

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

Dividends

POSCO pays an annual dividend of $1.15 per share and has a dividend yield of 2.2%. Vox Royalty pays an annual dividend of $0.06 per share and has a dividend yield of 1.2%. POSCO pays out 43.6% of its earnings in the form of a dividend. Vox Royalty pays out 9.0% 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for POSCO and Vox Royalty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
POSCO	1	0	1	1	2.67
Vox Royalty	0	1	4	0	2.80

Vox Royalty has a consensus target price of $8.00, suggesting a potential upside of 62.93%. Given Vox Royalty’s stronger consensus rating and higher probable upside, analysts clearly believe Vox Royalty is more favorable than POSCO.

Earnings & Valuation

This table compares POSCO and Vox Royalty”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
POSCO	$48.64 billion	0.32	$483.48 million	$2.64	19.56
Vox Royalty	$16.62 million	20.54	$5.89 million	$0.67	7.33

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

Institutional & Insider Ownership

46.0% of Vox Royalty shares are held by institutional investors. 0.0% of POSCO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares POSCO and Vox Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
POSCO	1.49%	1.68%	0.99%
Vox Royalty	144.32%	13.41%	12.00%

Volatility & Risk

POSCO has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Vox Royalty has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Summary

Vox Royalty beats POSCO on 9 of the 17 factors compared between the two stocks.

About POSCO

POSCO Holdings Inc., together with its subsidiaries, operates as an integrated steel producer in Korea and internationally. It operates through six segments: Steel, Trading, Construction, Logistics and Others, Green Materials and Energy, and Others. The company engages in the production, import, sale, and export of steel products, such as hot and cold rolled steel, stainless steel, plates, wire rods, and silicon steel sheets, as well as pig iron, billets, blooms, and slabs; trading of steel and raw materials, textiles, agricultural commodities, and other goods; natural resources development and power generation activities; and planning, designing, and construction of industrial plants, civil engineering projects, and commercial and residential buildings. It is also involved in the manufacture and sale of various energy-related and other industrial materials, including anode and cathode materials for rechargeable batteries; investment business; and provision of alternative environmentally-friendly energy solutions, as well as information technology and operational technology, and integrated logistics services. POSCO Holdings Inc. was incorporated in 1968 and is based in Seoul, South Korea.

About Vox Royalty

Vox Royalty Corp. operates as a mining royalty and streaming company. The company holds a portfolio of 60 royalties and streaming assets. It operates in Australia, Canada, Peru, Brazil, South Africa, Mexico, and the United States. Vox Royalty Corp. was founded in 2014 and is based in Toronto, Canada.