Reviewing Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) and Sappi (OTCMKTS:SPPJY)

Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) and Sappi (OTCMKTS:SPPJY) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kimberly-Clark de Mexico SAB de CV	13.36%	135.47%	14.19%
Sappi	1.75%	6.09%	2.56%

Dividends

Kimberly-Clark de Mexico SAB de CV pays an annual dividend of $0.11 per share and has a dividend yield of 1.1%. Sappi pays an annual dividend of $0.10 per share and has a dividend yield of 6.3%. Kimberly-Clark de Mexico SAB de CV pays out 17.7% of its earnings in the form of a dividend. Sappi pays out 58.8% 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Kimberly-Clark de Mexico SAB de CV and Sappi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimberly-Clark de Mexico SAB de CV	0	1	0	0	2.00
Sappi	1	0	0	0	1.00

Risk and Volatility

Kimberly-Clark de Mexico SAB de CV has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Sappi has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Earnings and Valuation

This table compares Kimberly-Clark de Mexico SAB de CV and Sappi”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimberly-Clark de Mexico SAB de CV	$3.01 billion	1.96	$429.88 million	$0.62	15.48
Sappi	$5.46 billion	0.16	$33.00 million	$0.17	9.41

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

Summary

Kimberly-Clark de Mexico SAB de CV beats Sappi on 9 of the 12 factors compared between the two stocks.

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.

About Sappi

Sappi Limited, together with its subsidiaries, engages in the provision of materials made from woodfiber-based renewable resources in Europe, North America, and South Africa. The company manufacture and sells dissolving pulp, and wood and paper pulp; graphic papers, coated and uncoated papers, and casting and release papers; and packaging and specialty papers, including packaging and specialty papers, including flexible packaging papers, label papers, functional paper packaging products, containerboards, paperboards, silicone base papers, and dye sublimation papers. It also provides biomaterials, such as valida, lignin, furfural, and sweeteners, as well as forestry products; and engages in the treasury and insurance business. The company was founded in 1936 and is headquartered in Johannesburg, South Africa.