WestRock vs International Paper Which Is a Better Investment?

Both WestRock and International Paper are leading companies in the packaging industry, with a strong presence in the global market. WestRock is known for its innovative solutions and sustainable practices, while International Paper boasts a long history of success and reliability. Investors must consider various factors such as financial performance, industry trends, and market competition when comparing these two stocks. This analysis will provide valuable insights for potential investors looking to make informed decisions in the stock market.

WestRock or International Paper?

When comparing WestRock 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 WestRock 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. WestRock has a dividend yield of 1.17%, while International Paper has a dividend yield of 3.26%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. WestRock reports a 5-year dividend growth of -8.36% year and a payout ratio of 164.43%. 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 WestRock P/E ratio at 72.00 and International Paper's P/E ratio at 47.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. WestRock P/B ratio is 1.36 while International Paper's P/B ratio is 2.30.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, WestRock has seen a 5-year revenue growth of 0.25%, while International Paper's is -0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with WestRock's ROE at 1.85% 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 $50.51 for WestRock and $56.30 for International Paper. Over the past year, WestRock's prices ranged from $31.23 to $54.83, with a yearly change of 75.54%. 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.