Financial Review: Rayonier Advanced Materials (NYSE:RYAM) vs. Klabin (OTCMKTS:KLBAY)

Rayonier Advanced Materials (NYSE:RYAM) and Klabin (OTCMKTS:KLBAY) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Rayonier Advanced Materials and Klabin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rayonier Advanced Materials	1	0	1	0	2.00
Klabin	0	2	0	0	2.00

Rayonier Advanced Materials currently has a consensus price target of $6.00, suggesting a potential upside of 16.73%. Given Rayonier Advanced Materials’ higher probable upside, equities analysts clearly believe Rayonier Advanced Materials is more favorable than Klabin.

Profitability

This table compares Rayonier Advanced Materials and Klabin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rayonier Advanced Materials	-29.23%	-12.11%	-3.68%
Klabin	9.90%	19.37%	3.50%

Earnings & Valuation

This table compares Rayonier Advanced Materials and Klabin”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rayonier Advanced Materials	$1.63 billion	0.21	-$38.71 million	($6.67)	-0.77
Klabin	$3.64 billion	5.81	$339.47 million	$0.60	11.42

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

Volatility and Risk

Rayonier Advanced Materials has a beta of 2.49, indicating that its share price is 149% more volatile than the S&P 500. Comparatively, Klabin has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Institutional & Insider Ownership

68.6% of Rayonier Advanced Materials shares are owned by institutional investors. 4.4% of Rayonier Advanced Materials shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Klabin beats Rayonier Advanced Materials on 8 of the 13 factors compared between the two stocks.

About Rayonier Advanced Materials

Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company’s products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. It also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, the company provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books and catalog covers, file folders, tags, and lottery tickets; and high-yield pulps to produces hardwood aspen, maple, and birch species for paperboard, packaging, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.

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.