Analyzing Givaudan (OTCMKTS:GVDNY) and Mativ (NYSE:MATV)

Mativ (NYSE:MATV) and Givaudan (OTCMKTS:GVDNY) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.

Earnings and Valuation

This table compares Mativ and Givaudan”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mativ	$1.98 billion	0.33	-$48.70 million	($8.03)	-1.51
Givaudan	$8.42 billion	4.59	$1.24 billion	N/A	N/A

Givaudan has higher revenue and earnings than Mativ.

Profitability

This table compares Mativ and Givaudan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mativ	-23.09%	4.12%	1.16%
Givaudan	N/A	N/A	N/A

Institutional and Insider Ownership

94.9% of Mativ shares are held by institutional investors. Comparatively, 0.0% of Givaudan shares are held by institutional investors. 2.0% of Mativ shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Mativ pays an annual dividend of $0.40 per share and has a dividend yield of 3.3%. Givaudan pays an annual dividend of $0.96 per share and has a dividend yield of 1.1%. Mativ pays out -5.0% of its earnings in the form of a dividend. Mativ has raised its dividend for 1 consecutive years. Mativ is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Mativ has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Givaudan has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Mativ and Givaudan, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mativ	1	1	1	0	2.00
Givaudan	0	2	0	1	2.67

Mativ currently has a consensus price target of $10.00, indicating a potential downside of 17.66%. Given Mativ’s higher possible upside, analysts clearly believe Mativ is more favorable than Givaudan.

Summary

Mativ beats Givaudan on 10 of the 16 factors compared between the two stocks.

About Mativ

Mativ Holdings, Inc., together with its subsidiaries, manufactures and sells specialty materials in the United States, Europe, the Asia Pacific, the Americas, and internationally. The company operates through two segments, Advanced Technical Materials and Fiber-Based Solutions. The Advanced Technical Materials manufactures and sells various engineered polymer, resin and fiber-based substrates, nets, films, adhesive tapes, and other nonwovens for the filtration, protective solutions, release liners, and healthcare end-markets. This segment sells its products directly, as well as through sales agents and distributors. The Fiber-Based Solutions segment produces packaging and specialty paper products. This segment provides premium packaging products that are used for wine, spirits and beer labels, folding cartons, box wrap, bags, hang tags, and stored value cards servicing retail, cosmetics, spirits, and electronics end-use markets; and premium papers, which are used in commercial printing services, advertising collateral, stationery, corporate identity packages and brochures, direct mail, business cards, and other uses. It also offers branded paper-based products for the consumer channel, such as bright papers, cardstock, stationery paper, envelopes, journals, and planners. This segment distributes its products through authorized paper distributors, converters, retailers, and specialty business converters, as well as directly to end-users. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.

About Givaudan

Givaudan SA manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, alcoholic beverages, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.