International Paper (NYSE: IP) is one of 22 public companies in the “PAPER” industry, but how does it compare to its rivals? We will compare International Paper to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, institutional ownership, profitability and earnings.

Earnings & Valuation

This table compares International Paper and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
International Paper $21.74 billion $2.14 billion 10.41
International Paper Competitors $5.69 billion $1.15 billion 15.05

International Paper has higher revenue and earnings than its rivals. International Paper is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

International Paper pays an annual dividend of $1.90 per share and has a dividend yield of 3.5%. International Paper pays out 37.0% of its earnings in the form of a dividend. As a group, “PAPER” companies pay a dividend yield of 2.4% and pay out 24.1% of their earnings in the form of a dividend. International Paper has increased its dividend for 6 consecutive years.

Risk and Volatility

International Paper has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, International Paper’s rivals have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Insider and Institutional Ownership

82.5% of International Paper shares are owned by institutional investors. Comparatively, 64.8% of shares of all “PAPER” companies are owned by institutional investors. 0.6% of International Paper shares are owned by company insiders. Comparatively, 5.6% of shares of all “PAPER” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares International Paper and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
International Paper 9.36% 29.05% 4.44%
International Paper Competitors 18.25% 10.77% 3.69%

Analyst Ratings

This is a breakdown of current recommendations and price targets for International Paper and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
International Paper 1 7 6 0 2.36
International Paper Competitors 127 469 529 31 2.40

International Paper presently has a consensus price target of $64.73, suggesting a potential upside of 20.92%. As a group, “PAPER” companies have a potential upside of 4.45%. Given International Paper’s higher possible upside, research analysts clearly believe International Paper is more favorable than its rivals.

Summary

International Paper beats its rivals on 8 of the 15 factors compared.

About International Paper

International Paper Company is a paper and packaging company with primary markets and manufacturing operations in North America, Europe, Latin America, Russia, Asia, Africa and the Middle East. The Company’s segments include Industrial Packaging, Global Cellulose Fibers, Printing Papers and Consumer Packaging. The Company is a manufacturer of containerboard in the United States. Its products include linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft. The Company’s cellulose fibers product portfolio includes fluff, market and specialty pulps. The Company is a producer of printing and writing papers. The products in Printing Papers segment include uncoated papers. The Company is a producer of solid bleached sulfate board. As of December 31, 2016, the Company operated 29 pulp, paper and packaging mills, 170 converting and packaging plants, 16 recycling plants and three bag facilities in the United States.

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