Head to Head Survey: Klabin (OTCMKTS:KLBAY) and International Paper (NYSE:IP)

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

Dividends

Klabin pays an annual dividend of $0.32 per share and has a dividend yield of 4.7%. International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 4.0%. Klabin pays out 53.3% of its earnings in the form of a dividend. International Paper pays out -1,850.0% 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.

Risk & Volatility

Klabin has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, International Paper has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Klabin	$3.64 billion	5.81	$339.47 million	$0.60	11.42
International Paper	$18.62 billion	1.32	$557.00 million	($0.10)	-466.40

International Paper has higher revenue and earnings than Klabin. International Paper is trading at a lower price-to-earnings ratio than Klabin, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Klabin	9.90%	19.37%	3.50%
International Paper	-0.12%	2.63%	1.09%

Institutional and Insider Ownership

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Klabin and International Paper, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Klabin	0	2	0	0	2.00
International Paper	2	2	4	0	2.25

International Paper has a consensus target price of $55.4571, indicating a potential upside of 18.90%. Given International Paper’s stronger consensus rating and higher probable upside, analysts clearly believe International Paper is more favorable than Klabin.

Summary

International Paper beats Klabin on 9 of the 16 factors compared between the two stocks.

About Klabin

Klabin S.A., together with its subsidiaries, produces and exports packaging paper and sustainable paper packaging solutions in Brazil and internationally. The company engages in the planting of pine and eucalyptus; and forestry management business. It also produces and sells hardwood (eucalyptus), softwood (pine), and fluffed pulp; and paperboard, sackraft, Kraftliner paper, and recycled paper. In addition, the company offers industrial bags, corrugated boxes, and other packaging products. Klabin S.A. was founded in 1899 and is headquartered in São Paulo, Brazil.

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.