Powder metallurgical components reveal a high dimensional accuracy while offering a cost efficient and sustainable production. The inherent porosity contributes to a notable weight reduction but also affects the strength and durability. Numerous studies examined the effect of the porosity and the size and shape of individual pores on the fatigue behaviour. However, its effect on yielding behaviour is rarely reported. In this work, uniaxial compaction and dilatometry are used to produce cylindrical samples with different sintering states and densities. Microstructural analyses are performed to evaluate the effect of different sintering conditions on pore morphology and subsequently derive two-dimensional finite element models to virtually assess the effect of the pore morphology and density on strength. The results are compared with corresponding Rastagaev compression tests that are conducted with identical cylindrical samples. Additional three-dimensional simulations are performed based on μ-CT measurements to evaluate the difference between two- and three-dimensional simulation models.