Head to Head Survey: Rayonier Advanced Materials (RYAM) vs. Sealed Air (SEE)

Rayonier Advanced Materials (NYSE: RYAM) and Sealed Air (NYSE:SEE) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Volatility and Risk

How to Become a New Pot Stock Millionaire

Rayonier Advanced Materials has a beta of 3.52, indicating that its share price is 252% more volatile than the S&P 500. Comparatively, Sealed Air has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Institutional & Insider Ownership

94.2% of Rayonier Advanced Materials shares are held by institutional investors. Comparatively, 98.3% of Sealed Air shares are held by institutional investors. 2.2% of Rayonier Advanced Materials shares are held by company insiders. Comparatively, 0.6% of Sealed Air shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Rayonier Advanced Materials and Sealed Air’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rayonier Advanced Materials $961.00 million 1.20 $324.96 million $0.97 22.99
Sealed Air $4.46 billion 1.69 $814.90 million $1.81 24.88

Sealed Air has higher revenue and earnings than Rayonier Advanced Materials. Rayonier Advanced Materials is trading at a lower price-to-earnings ratio than Sealed Air, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Rayonier Advanced Materials and Sealed Air, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rayonier Advanced Materials 0 1 4 0 2.80
Sealed Air 0 7 6 0 2.46

Rayonier Advanced Materials currently has a consensus target price of $20.20, suggesting a potential downside of 9.42%. Sealed Air has a consensus target price of $50.18, suggesting a potential upside of 11.42%. Given Sealed Air’s higher possible upside, analysts clearly believe Sealed Air is more favorable than Rayonier Advanced Materials.

Profitability

This table compares Rayonier Advanced Materials and Sealed Air’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rayonier Advanced Materials 33.92% 16.99% 3.33%
Sealed Air 17.90% 74.28% 5.22%

Dividends

Rayonier Advanced Materials pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. Sealed Air pays an annual dividend of $0.64 per share and has a dividend yield of 1.4%. Rayonier Advanced Materials pays out 28.9% of its earnings in the form of a dividend. Sealed Air pays out 35.4% 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. Sealed Air has raised its dividend for 2 consecutive years. Sealed Air is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Sealed Air beats Rayonier Advanced Materials on 12 of the 17 factors compared between the two stocks.

Rayonier Advanced Materials Company Profile

Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Japan, Europe, Latin America, other Asian countries, Canada, and internationally. The company operates through High Purity Cellulose, Forest Products, and Pulp & Paper segments. Its products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as cigarette filters, liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. The company also offers commodity products, such as commodity viscose used in woven applications, including rayon textiles for clothing and other fabrics, and in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, it provides finished dimensional lumber for use in the construction of residential and multi-family homes, light industrial, and commercial facilities, as well as in the home repair and remodel markets. Further, the company offers pulp and paper products, which include paperboards used for packaging, printing documents, brochures, promotional materials, paperback book or catalog covers, file folders, tags, and tickets; high-yield pulps to produce paperboard products, printing and writing papers, and various other paper grades; and newsprint, a paper grade used to print newspapers, advertising materials, and other publications. Rayonier Advanced Materials Inc. is headquartered in Jacksonville, Florida.

Sealed Air Company Profile

Sealed Air Corporation provides food safety and security, and product protection solutions worldwide. The company operates through Food Care and Product Care segments. The Food Care segment offers integrated system solutions that enhance the management of contamination risk during the food and beverage production process, extend product shelf life through packaging technologies, and improve merchandising, ease-of-use, and back-of-house preparation processes to processors, retailers, and food service operators under the Cryovac Grip & Tear, Cryovac Darfresh, Cryovac Mirabella, Simple Steps, and Optidure brands. It also provides integrated system solutions that incorporate equipment systems, which are frequently integrated into customers' operations; and packaging equipment for loading, filling, and dispensing. In addition, this segment offers graphic design, printing, training, field quality assurance, and remote diagnostics services; flexible packaging materials for medical and drug delivery devices; specialty component films for ostomy and colostomy bags; and PVC free films for packing pharmaceutical solutions, as well as new venture businesses. The Product Care segment provides packaging solutions under the Bubble Wrap and AirCap, Cryovac, Shanklin FloWrap, Instapak, Jiffy, and Korrvu brands, as well as I-Pack systems and e-Cube systems. The company serves food and beverage processing, food service, retail, healthcare and industrial, and commercial and consumer applications. Sealed Air Corporation was founded in 1960 and is headquartered in Charlotte, North Carolina.

Receive News & Ratings for Rayonier Advanced Materials Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rayonier Advanced Materials and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply