Smurfit Kappa Group (OTCMKTS:SMFKY) versus International Paper (NYSE:IP) Head to Head Contrast

Smurfit Kappa Group (OTCMKTS:SMFKY) and International Paper (NYSE:IP) are both large-cap 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.

Dividends

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

Institutional and Insider Ownership

0.0% of Smurfit Kappa Group shares are held by institutional investors. Comparatively, 81.9% of International Paper shares are held by institutional investors. 0.2% of International Paper 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.

Risk & Volatility

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

Profitability

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

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

Valuation and Earnings

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

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

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

Analyst Recommendations

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

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

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

Summary

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

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.

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.