Head-To-Head Contrast: Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) & 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 investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

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%

Valuation and Earnings

This table compares Kimberly-Clark de Mexico SAB de CV and Sappi”s revenue, earnings per share (EPS) 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	1.98	$429.88 million	$0.62	15.58
Sappi	$5.46 billion	0.17	$33.00 million	$0.17	9.91

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.

Volatility & Risk

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

Analyst Ratings

This is a summary of recent ratings and price targets for Kimberly-Clark de Mexico SAB de CV and Sappi, as provided 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

Dividends

Kimberly-Clark de Mexico SAB de CV pays an annual dividend of $0.49 per share and has a dividend yield of 5.1%. Sappi pays an annual dividend of $0.10 per share and has a dividend yield of 5.9%. Kimberly-Clark de Mexico SAB de CV pays out 79.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sappi pays out 58.8% of its earnings in the form of a dividend. Sappi is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Kimberly-Clark de Mexico SAB de CV beats Sappi on 8 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.