Smurfit Westrock (NYSE:SW) versus Klabin (OTCMKTS:KLBAY) Head-To-Head Contrast

Smurfit Westrock (NYSE:SW) and Klabin (OTCMKTS:KLBAY) are both large-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Institutional & Insider Ownership

83.4% of Smurfit Westrock shares are held by institutional investors. 0.5% of Smurfit Westrock shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Smurfit Westrock pays an annual dividend of $1.72 per share and has a dividend yield of 4.7%. Klabin pays an annual dividend of $0.37 per share and has a dividend yield of 5.4%. Smurfit Westrock pays out 120.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Klabin pays out 61.7% of its earnings in the form of a dividend. Klabin is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Smurfit Westrock has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Klabin has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Smurfit Westrock and Klabin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smurfit Westrock	0	1	10	1	3.00
Klabin	0	1	0	1	3.00

Smurfit Westrock currently has a consensus price target of $56.90, suggesting a potential upside of 56.65%. Given Smurfit Westrock’s higher probable upside, equities analysts plainly believe Smurfit Westrock is more favorable than Klabin.

Profitability

This table compares Smurfit Westrock and Klabin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smurfit Westrock	2.40%	6.21%	2.49%
Klabin	9.90%	18.24%	3.49%

Earnings & Valuation

This table compares Smurfit Westrock and Klabin”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smurfit Westrock	$31.14 billion	0.61	$319.00 million	$1.43	25.40
Klabin	$3.64 billion	5.83	$339.47 million	$0.60	11.45

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

Summary

Smurfit Westrock beats Klabin on 8 of the 15 factors compared between the two stocks.

About Smurfit Westrock

Smurfit Westrock Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland and internationally. The company produces containerboard that it converts into corrugated containers or sells to third parties, as well as produces other types of paper, such as consumer packaging board, sack paper, graphic paper, solid board and graphic board, and other paper-based packaging products, such as consumer packaging, solid board packaging, paper sacks, and other packaging products, including bag-in-box. It also produces linerboard and corrugated medium, paperboard, and non-packaging grades of paper, as well as converted products, such as folding cartons and corrugated boxes, and other products; recycled paper-based packaging products; and packaging machinery. The company primarily serves food and beverage, e-commerce, retail, consumer goods, industrial, and foodservice markets. Smurfit Westrock Plc was founded in 1934 and is headquartered in Dublin, Ireland.

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.