Head-To-Head Contrast: Klabin (OTCMKTS:KLBAY) and Rayonier Advanced Materials (NYSE:RYAM)

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

Institutional and Insider Ownership

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Rayonier Advanced Materials and Klabin, as provided by MarketBeat.com.

Rayonier Advanced Materials currently has a consensus price target of $6.00, indicating a potential downside of 0.41%. Given Rayonier Advanced Materials’ higher probable upside, research 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.

Valuation and Earnings

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

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 2.55, suggesting that its share price is 155% more volatile than the S&P 500. Comparatively, Klabin has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Summary

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

About Rayonier Advanced Materials

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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

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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.