Contrasting International Paper (NYSE:IP) and Smurfit Kappa Group (OTCMKTS:SMFKY)

International Paper (NYSE:IP) and Smurfit Kappa Group (OTCMKTS:SMFKY) are both large-cap materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Risk & Volatility

International Paper has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Smurfit Kappa Group has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Insider & Institutional Ownership

81.9% of International Paper shares are held by institutional investors. Comparatively, 0.0% of Smurfit Kappa Group shares are held by institutional investors. 0.2% of International Paper shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares International Paper and Smurfit Kappa Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Paper	$22.94 billion	0.95	-$3.52 billion	($6.36)	-6.45
Smurfit Kappa Group	$12.20 billion	0.98	$820.38 million	N/A	N/A

Smurfit Kappa Group has lower revenue, but higher earnings than International Paper.

Analyst Ratings

This is a breakdown of recent ratings and price targets for International Paper and Smurfit Kappa Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Paper	1	4	9	0	2.57
Smurfit Kappa Group	0	0	0	0	0.00

International Paper currently has a consensus price target of $48.75, indicating a potential upside of 18.81%. Given International Paper’s stronger consensus rating and higher probable upside, equities analysts clearly believe International Paper is more favorable than Smurfit Kappa Group.

Profitability

This table compares International Paper and Smurfit Kappa Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Paper	-13.42%	-0.49%	-0.21%
Smurfit Kappa Group	N/A	N/A	N/A

Dividends

International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 4.5%. Smurfit Kappa Group pays an annual dividend of $1.81 per share and has a dividend yield of 3.9%. International Paper pays out -29.1% of its earnings in the form of a dividend.

Summary

International Paper beats Smurfit Kappa Group on 8 of the 14 factors compared between the two stocks.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.

About Smurfit Kappa Group

Smurfit Kappa Group Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland, Germany, France, Mexico, rest of Europe, and other Americas. The company offers e-commerce, retail, consumer, industrial, bottle, protective, heavy-duty, hexacomb, and various punnet packaging products; composite cardboard tubes, bags, and sacks; and bag-in-box, a packaging system that comprises films, accessories, bags, taps, and boxes. It also provides point of sale displays; cardboards of social distancing; corrugated sheet boards, solid board sheets, folding carton sheet boards, sack Kraft papers, MG brown Kraft papers, preprint products, agro-papers, technical papers, BanaBag, and Catcher Board MB12; and various types of containerboards, such as kraftliners, testliners, and containerboard flutings. In addition, the company offers recycling solutions to cardboard and paper products; and supplies packaging machinery. It primarily serves consumer goods, industrial goods, and food and drink sectors. Smurfit Kappa Group Plc was founded in 1934 and is headquartered in Dublin, Ireland.