Contrasting International Paper (NYSE:IP) and MONDI PLC UNS (OTCMKTS:MONDY)

MONDI PLC UNS (OTCMKTS:MONDY) and International Paper (NYSE:IP) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Earnings and Valuation

This table compares MONDI PLC UNS and International Paper”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MONDI PLC UNS	$8.03 billion	0.78	$235.90 million	N/A	N/A
International Paper	$18.62 billion	1.37	$557.00 million	($0.10)	-481.50

International Paper has higher revenue and earnings than MONDI PLC UNS.

Analyst Recommendations

This is a summary of current ratings and target prices for MONDI PLC UNS and International Paper, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MONDI PLC UNS	0	1	1	1	3.00
International Paper	2	2	5	0	2.33

International Paper has a consensus target price of $55.0250, suggesting a potential upside of 14.28%. Given International Paper’s higher possible upside, analysts clearly believe International Paper is more favorable than MONDI PLC UNS.

Profitability

This table compares MONDI PLC UNS and International Paper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MONDI PLC UNS	N/A	N/A	N/A
International Paper	-0.12%	2.63%	1.09%

Dividends

MONDI PLC UNS pays an annual dividend of $1.98 per share and has a dividend yield of 7.0%. International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 3.8%. International Paper pays out -1,850.0% of its earnings in the form of a dividend.

Risk & Volatility

MONDI PLC UNS has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, International Paper has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Insider & Institutional Ownership

82.0% of International Paper shares are owned by institutional investors. 0.4% of International Paper shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

International Paper beats MONDI PLC UNS on 11 of the 15 factors compared between the two stocks.

About MONDI PLC UNS

Mondi plc, together with its subsidiaries, engages in the manufacture and sale of packaging and paper solutions in Africa, Western Europe, Emerging Europe, North America, South America, Asia, Australia, and internationally. The company operates in three segments: Corrugated Packaging, Flexible Packaging, and Uncoated Fine Paper. The Corrugated Packaging segment provides virgin and recycled containerboards for fresh fruit packaging and heavy and fragile goods transport packaging applications; and corrugated solutions, such as corrugated boxes and packaging products. The Flexible Packaging segment offers sack kraft paper, paper bags, specialty kraft paper, consumer flexibles, and functional paper and films. The Uncoated Fine Paper segment provides uncoated fine paper comprising home, office, converting, and professional printing papers; and market pulp. It serves customers in the agriculture, automotive, building and construction, chemicals, food and beverages, home and personal care, pet care, retail, and shipping and transport industries. The company was incorporated in 2007 and is based in Weybridge, the United Kingdom.

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.