Smurfit Kappa vs WestRock Which Is More Reliable?

Smurfit Kappa and WestRock are two leading companies in the packaging industry, each with their own strengths and global presence. Smurfit Kappa, based in Ireland, focuses on sustainable packaging solutions, while WestRock, based in the US, is known for its diverse product offerings. Both companies have seen steady growth in recent years, with Smurfit Kappa showing strong performance in Europe and WestRock expanding its reach in North America. Investors looking to diversify their portfolio in the packaging sector may find these two stocks to be appealing options.

Smurfit Kappa or WestRock?

When comparing Smurfit Kappa 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 Smurfit Kappa 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. Smurfit Kappa has a dividend yield of 106.07%, while WestRock has a dividend yield of 1.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Smurfit Kappa reports a 5-year dividend growth of 4.39% year and a payout ratio of 48.15%. 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 Smurfit Kappa P/E ratio at 9.72 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. Smurfit Kappa P/B ratio is 2.00 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, Smurfit Kappa has seen a 5-year revenue growth of 0.16%, while WestRock's is 0.25%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Smurfit Kappa's ROE at 20.98% and WestRock's ROE at 1.85%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $45.96 for Smurfit Kappa and $50.51 for WestRock. Over the past year, Smurfit Kappa's prices ranged from $30.66 to $55.50, with a yearly change of 81.02%. 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.