Head to Head Review: Northwest Pipe (NWPX) versus POSCO (PKX)
Northwest Pipe (NASDAQ: NWPX) and POSCO (NYSE:PKX) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
POSCO pays an annual dividend of $0.55 per share and has a dividend yield of 0.7%. Northwest Pipe does not pay a dividend. POSCO pays out 8.1% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Northwest Pipe and POSCO’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Northwest Pipe||$156.26 million||1.11||-$9.26 million||($0.23)||-78.65|
|POSCO||$45.65 billion||0.52||$1.22 billion||$6.82||10.81|
POSCO has higher revenue and earnings than Northwest Pipe. Northwest Pipe is trading at a lower price-to-earnings ratio than POSCO, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Northwest Pipe and POSCO, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Northwest Pipe currently has a consensus price target of $9.00, indicating a potential downside of 50.25%. Given Northwest Pipe’s higher probable upside, equities research analysts clearly believe Northwest Pipe is more favorable than POSCO.
Insider & Institutional Ownership
84.1% of Northwest Pipe shares are held by institutional investors. Comparatively, 5.2% of POSCO shares are held by institutional investors. 2.0% of Northwest Pipe 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 stock will outperform the market over the long term.
This table compares Northwest Pipe and POSCO’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Northwest Pipe has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, POSCO has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.
POSCO beats Northwest Pipe on 9 of the 15 factors compared between the two stocks.
About Northwest Pipe
Northwest Pipe Company is a manufacturer of engineered steel pipe water systems. The Company operates through two segments. The Water Transmission segment produces steel pipeline systems for use in drinking water infrastructure, and has approximately eight manufacturing facilities, located in Portland, Oregon; Denver, Colorado; Adelanto, California; Parkersburg, West Virginia; Saginaw, Texas; St. Louis, Missouri; Salt Lake City, Utah, and Monterrey, Mexico. The Tubular Products segment produces steel line pipe products for energy applications, and has a manufacturing facility located in Atchison, Kansas. The Company, through Water Transmission Group, produces engineered welded steel pipe products for use in water transmission applications. It also manufactures smaller diameter electric resistance welded (ERW) steel pipe through its Tubular Products Group. The Company’s solutions-based products are used in water transmission, plant piping, tunnels and river crossings applications.
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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