Sylvamo (SLVM) & Its Rivals Critical Comparison

Sylvamo (NYSE:SLVM) is one of 21 publicly-traded companies in the “Paper & Paper Products” industry, but how does it contrast to its rivals? We will compare Sylvamo to similar businesses based on the strength of its profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Profitability

This table compares Sylvamo and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sylvamo	7.87%	55.02%	12.80%
Sylvamo Competitors	1.09%	11.36%	3.96%

Earnings and Valuation

This table compares Sylvamo and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sylvamo	$3.76 billion	$118.00 million	6.00
Sylvamo Competitors	$3.29 billion	$136.75 million	1,135.38

Sylvamo has higher revenue, but lower earnings than its rivals. Sylvamo is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Sylvamo has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Sylvamo’s rivals have a beta of 1.19, suggesting that their average share price is 19% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sylvamo and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sylvamo	0	1	1	0	2.50
Sylvamo Competitors	28	251	418	11	2.58

Sylvamo currently has a consensus target price of $52.50, suggesting a potential upside of 28.74%. As a group, “Paper & Paper Products” companies have a potential upside of 21.53%. Given Sylvamo’s higher possible upside, equities analysts clearly believe Sylvamo is more favorable than its rivals.

Insider & Institutional Ownership

89.1% of Sylvamo shares are held by institutional investors. Comparatively, 63.4% of shares of all “Paper & Paper Products” companies are held by institutional investors. 0.3% of Sylvamo shares are held by company insiders. Comparatively, 12.8% of shares of all “Paper & Paper Products” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Sylvamo pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Sylvamo pays out 14.7% of its earnings in the form of a dividend. As a group, “Paper & Paper Products” companies pay a dividend yield of 3.2% and pay out 192.2% of their earnings in the form of a dividend.

Summary

Sylvamo rivals beat Sylvamo on 8 of the 15 factors compared.

About Sylvamo

Sylvamo Corporation produces and markets uncoated freesheet, cutsize, offset paper, and pulp in Latin America, Europe, and North America. The company operates through Europe, Latin America, and North America segments. The Europe segment offers copy, tinted, and colored laser printing paper under REY Adagio and Pro-Design brands; and high-speed inkjet printing papers under the brand Jetstar; as well as produces uncoated freesheet papers. This segment also operates paper and pulp mill. The Latin America segment focuses on uncoated freesheet paper under Chamex, Chamequinho and Chambril brands, as well as produces HP papers. This segment also operates integrated mills and nonintegrated mills. The North America segment offers imaging, commercial printing, and converting papers, as well as uncoated papers under Hammermill, Springhill, Williamsburg, Accent, DRM and Postmark brand names. It distributes its products through a variety of channels, including merchants, e-commerce, agents, resellers, and paper distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.