International Paper vs Smurfit Kappa Which Is Superior?

International Paper and Smurfit Kappa are two leading companies in the paper and packaging industry, each with its own unique strengths and market presence. International Paper, based in the United States, is a global leader in paper and packaging solutions, while Smurfit Kappa, headquartered in Ireland, is a major player in sustainable packaging solutions. Both companies are publicly traded on major stock exchanges, offering investors the opportunity to participate in the growth and performance of the paper and packaging industry.

International Paper or Smurfit Kappa?

When comparing International Paper and Smurfit Kappa, 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 International Paper and Smurfit Kappa.

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. International Paper has a dividend yield of 3.37%, while Smurfit Kappa has a dividend yield of 107.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. International Paper reports a 5-year dividend growth of -0.79% year and a payout ratio of 152.86%. On the other hand, Smurfit Kappa reports a 5-year dividend growth of 5.44% year and a payout ratio of 45.35%.

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 International Paper P/E ratio at 45.56 and Smurfit Kappa's P/E ratio at 12.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. International Paper P/B ratio is 2.22 while Smurfit Kappa's P/B ratio is 2.04.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, International Paper has seen a 5-year revenue growth of -0.04%, while Smurfit Kappa's is 0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with International Paper's ROE at 4.97% and Smurfit Kappa's ROE at 16.52%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.86 for International Paper and $45.96 for Smurfit Kappa. Over the past year, International Paper's prices ranged from $32.70 to $60.36, with a yearly change of 84.59%. Smurfit Kappa's prices fluctuated between $30.66 and $55.50, with a yearly change of 81.02%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.