International Paper vs WestRock Which Is a Better Investment?

International Paper and WestRock are two prominent players in the global paper and packaging industry. Both companies have a long-standing history and proven track record of success in the market. Investors often compare the performance of their stocks to assess which may be a better investment opportunity. International Paper, known for its diverse product portfolio and strong market presence, competes directly with WestRock, a company that focuses on innovation and sustainability in its operations. This comparison provides valuable insights for investors looking to make informed decisions in the stock market.

International Paper or WestRock?

When comparing International Paper and WestRock, 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 WestRock.

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 3.38%, while WestRock has a dividend yield of 1.17%. 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, WestRock reports a 5-year dividend growth of -8.36% year and a payout ratio of 164.43%.

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 45.48 and WestRock's P/E ratio at 72.00. 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 2.21 while WestRock's P/B ratio is 1.36.

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 WestRock's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with International Paper's ROE at 4.97% and WestRock's ROE at 1.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $54.63 for International Paper and $50.51 for WestRock. Over the past year, International Paper's prices ranged from $32.70 to $60.36, with a yearly change of 84.59%. WestRock's prices fluctuated between $31.23 and $54.83, with a yearly change of 75.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.