DS Smith vs Mondi Which Outperforms?

DS Smith and Mondi are two major players in the packaging and paper industry, both with strong performances in the stock market. DS Smith, a British-based company, specializes in sustainable packaging solutions while Mondi, a South African company, focuses on packaging and paper products. Both companies have experienced growth in recent years, with DS Smith outperforming Mondi in terms of revenue and profits. Investors have shown interest in both stocks, but they have differing opinions on which one offers better long-term potential.

DS Smith or Mondi?

When comparing DS Smith and Mondi, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between DS Smith and Mondi.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. DS Smith has a dividend yield of 4.81%, while Mondi has a dividend yield of 18.82%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. DS Smith reports a 5-year dividend growth of 3.30% year and a payout ratio of 67.66%. On the other hand, Mondi reports a 5-year dividend growth of -10.47% year and a payout ratio of 278.57%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with DS Smith P/E ratio at 13.78 and Mondi's P/E ratio at 16.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. DS Smith P/B ratio is 1.70 while Mondi's P/B ratio is 1.31.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, DS Smith has seen a 5-year revenue growth of 0.30%, while Mondi's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with DS Smith's ROE at 12.22% and Mondi's ROE at 7.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $6.25 for DS Smith and £1196.00 for Mondi. Over the past year, DS Smith's prices ranged from $3.25 to $6.55, with a yearly change of 101.54%. Mondi's prices fluctuated between £1196.00 and £1719.85, with a yearly change of 43.80%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.