Analyzing Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) & Smurfit Westrock (NYSE:SW)

Smurfit Westrock (NYSE:SW) and Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Institutional & Insider Ownership

83.4% of Smurfit Westrock shares are held by institutional investors. 0.5% of Smurfit Westrock shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Smurfit Westrock has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Kimberly-Clark de Mexico SAB de CV has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Smurfit Westrock and Kimberly-Clark de Mexico SAB de CV, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smurfit Westrock	0	1	9	0	2.90
Kimberly-Clark de Mexico SAB de CV	0	1	0	0	2.00

Smurfit Westrock currently has a consensus price target of $57.90, suggesting a potential upside of 29.04%. Given Smurfit Westrock’s stronger consensus rating and higher possible upside, analysts plainly believe Smurfit Westrock is more favorable than Kimberly-Clark de Mexico SAB de CV.

Dividends

Smurfit Westrock pays an annual dividend of $1.72 per share and has a dividend yield of 3.8%. Kimberly-Clark de Mexico SAB de CV pays an annual dividend of $0.49 per share and has a dividend yield of 5.1%. Smurfit Westrock pays out 141.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimberly-Clark de Mexico SAB de CV pays out 74.2% of its earnings in the form of a dividend. Kimberly-Clark de Mexico SAB de CV is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Smurfit Westrock and Kimberly-Clark de Mexico SAB de CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smurfit Westrock	1.98%	7.38%	2.95%
Kimberly-Clark de Mexico SAB de CV	13.90%	135.86%	14.95%

Valuation & Earnings

This table compares Smurfit Westrock and Kimberly-Clark de Mexico SAB de CV”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smurfit Westrock	$21.11 billion	1.11	$319.00 million	$1.22	36.78
Kimberly-Clark de Mexico SAB de CV	$3.01 billion	1.95	$429.88 million	$0.66	14.47

Kimberly-Clark de Mexico SAB de CV has lower revenue, but higher earnings than Smurfit Westrock. Kimberly-Clark de Mexico SAB de CV is trading at a lower price-to-earnings ratio than Smurfit Westrock, indicating that it is currently the more affordable of the two stocks.

Summary

Smurfit Westrock beats Kimberly-Clark de Mexico SAB de CV on 9 of the 16 factors compared between the two stocks.

About Smurfit Westrock

Smurfit Westrock Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland and internationally. The company produces containerboard that it converts into corrugated containers or sells to third parties, as well as produces other types of paper, such as consumer packaging board, sack paper, graphic paper, solid board and graphic board, and other paper-based packaging products, such as consumer packaging, solid board packaging, paper sacks, and other packaging products, including bag-in-box. It also produces linerboard and corrugated medium, paperboard, and non-packaging grades of paper, as well as converted products, such as folding cartons and corrugated boxes, and other products; recycled paper-based packaging products; and packaging machinery. The company primarily serves food and beverage, e-commerce, retail, consumer goods, industrial, and foodservice markets. Smurfit Westrock Plc was founded in 1934 and is headquartered in Dublin, Ireland.

About Kimberly-Clark de Mexico SAB de CV

Kimberly-Clark de México, S. A. B. de C. V., together with its subsidiaries, manufactures, distributes, and markets disposable products in Mexico. The company offers baby diapers, training pants, swim pants, wet wipes, shampoos, creams, bar soaps, and feeding products. It also provides toilet papers, napkins, facial tissues, paper towels, feminine pads, panty liners, tampons, intimate wipes, and menstrual cups. In addition, the company offers pets shampoos, sprays, repellents, and cleaners. Further, it provides liquid hand soap, foaming liquid soap, and liquid body wash; and underwear, protectors, feminine pads, pre-folded products for adults. Additionally, the company offers anti-bacterial gels; disinfectant sprays; face masks; dispensers; hand towels; and industrial cleaning cloths. The company offers its products primarily under the Huggies, KleenBebe, Kleenex, Evenflo, Pétalo, Suavel, Cottonelle, Depend, Kotex, Pull-Ups, GoodNites, Vogue, Delsey, Diapro, LYS, Fancy, Kimberly-Clark, and Escudo brands. The company exports its products. Kimberly-Clark de México, S. A. B. de C. V. was founded in 1925 and is based in Mexico City, Mexico.