Suzano (NYSE:SUZ – Get Free Report) and Rayonier Advanced Materials (NYSE:RYAM – Get Free Report) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Institutional & Insider Ownership
2.6% of Suzano shares are owned by institutional investors. Comparatively, 68.6% of Rayonier Advanced Materials shares are owned by institutional investors. 4.4% of Rayonier Advanced Materials shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Suzano and Rayonier Advanced Materials”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Suzano | $8.79 billion | 1.39 | -$1.31 billion | ($0.14) | -65.75 |
| Rayonier Advanced Materials | $1.63 billion | 0.18 | -$38.71 million | ($1.06) | -4.16 |
Rayonier Advanced Materials has lower revenue, but higher earnings than Suzano. Suzano is trading at a lower price-to-earnings ratio than Rayonier Advanced Materials, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for Suzano and Rayonier Advanced Materials, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Suzano | 0 | 0 | 1 | 1 | 3.50 |
| Rayonier Advanced Materials | 0 | 0 | 1 | 0 | 3.00 |
Rayonier Advanced Materials has a consensus target price of $6.00, suggesting a potential upside of 36.21%. Given Rayonier Advanced Materials’ higher probable upside, analysts clearly believe Rayonier Advanced Materials is more favorable than Suzano.
Risk and Volatility
Suzano has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Rayonier Advanced Materials has a beta of 2.46, suggesting that its share price is 146% more volatile than the S&P 500.
Profitability
This table compares Suzano and Rayonier Advanced Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Suzano | -2.43% | -3.08% | -0.75% |
| Rayonier Advanced Materials | -4.38% | -4.71% | -1.58% |
Summary
Suzano beats Rayonier Advanced Materials on 8 of the 14 factors compared between the two stocks.
About Suzano
Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. It operates through Pulp and Paper segments. The company offers coated and uncoated printing and writing papers, paperboards, tissue papers, and market and fluff pulps; and lignin. It also engages in the research, development, and production of biofuel; operation of port terminals; power generation and distribution business; commercialization of equipment and parts; industrialization, commercialization, and exporting of pulp and standing wood; road freight transport; biotechnology research and development; and commercialization of paper and computer materials. In addition, the company is involved in the business office, production packaging, and financial fundraising activities; research, development, production, commercialization, and distribution of wood-based textile fibers, yarns, and filaments produced from cellulose and microfibrillated cellulose; and research and development of wood raw materials for the textile industry. Suzano S.A. was formerly known as Suzano Papel e Celulose S.A. and changed its name to Suzano S.A. in April 2019. The company was founded in 1924 and is headquartered in Salvador, Brazil.
About Rayonier Advanced Materials
Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company’s products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. It also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, the company provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books and catalog covers, file folders, tags, and lottery tickets; and high-yield pulps to produces hardwood aspen, maple, and birch species for paperboard, packaging, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.
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