Smurfit Kappa vs International Paper Which Is a Better Investment?

Smurfit Kappa and International Paper are two prominent players in the paper and packaging industry, each with a strong presence in the global market. Smurfit Kappa, based in Ireland, is known for its innovative packaging solutions and sustainable practices. On the other hand, International Paper, headquartered in the United States, is one of the largest paper and packaging companies in the world. Both companies have seen fluctuations in their stock prices in recent years, making them interesting investment options for shareholders looking to capitalize on the growing demand for eco-friendly packaging solutions.

Smurfit Kappa or International Paper?

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

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. Smurfit Kappa has a dividend yield of 107.61%, while International Paper has a dividend yield of 3.33%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Smurfit Kappa reports a 5-year dividend growth of 5.44% year and a payout ratio of 45.35%. On the other hand, International Paper reports a 5-year dividend growth of -0.79% year and a payout ratio of 152.86%.

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 Smurfit Kappa P/E ratio at 12.44 and International Paper's P/E ratio at 46.13. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Smurfit Kappa P/B ratio is 2.03 while International Paper's P/B ratio is 2.25.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $45.96 for Smurfit Kappa and $54.77 for International Paper. Over the past year, Smurfit Kappa's prices ranged from $30.66 to $55.50, with a yearly change of 81.02%. International Paper's prices fluctuated between $32.70 and $60.36, with a yearly change of 84.59%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.