Comparing Smurfit Kappa Group (OTCMKTS:SMFKY) and Epiroc AB (publ) (OTCMKTS:EPOKY)

Epiroc AB (publ) (OTCMKTS:EPOKY) and Smurfit Kappa Group (OTCMKTS:SMFKY) are both large-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Dividends

Epiroc AB (publ) pays an annual dividend of $0.17 per share and has a dividend yield of 0.8%. Smurfit Kappa Group pays an annual dividend of $1.81 per share and has a dividend yield of 3.9%. Epiroc AB (publ) pays out 25.0% of its earnings in the form of a dividend.

Profitability

This table compares Epiroc AB (publ) and Smurfit Kappa Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Epiroc AB (publ)	13.74%	21.50%	10.73%
Smurfit Kappa Group	N/A	N/A	N/A

Risk and Volatility

Epiroc AB (publ) has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Smurfit Kappa Group has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Smurfit Kappa Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Epiroc AB (publ) and Smurfit Kappa Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Epiroc AB (publ)	$6.02 billion	4.11	$825.95 million	$0.68	30.10
Smurfit Kappa Group	$12.20 billion	0.98	$820.38 million	N/A	N/A

Epiroc AB (publ) has higher earnings, but lower revenue than Smurfit Kappa Group.

Analyst Recommendations

This is a summary of current ratings for Epiroc AB (publ) and Smurfit Kappa Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Epiroc AB (publ)	0	2	0	1	2.67
Smurfit Kappa Group	0	0	0	0	0.00

Summary

Epiroc AB (publ) beats Smurfit Kappa Group on 8 of the 12 factors compared between the two stocks.

About Epiroc AB (publ)

Epiroc AB (publ), together with its subsidiaries, develops and produces equipment for use in surface and underground applications in North America, Europe, South America, Europe, Africa, the Middle East, Asia, and Australia. It operates in two segments, Equipment & Service, and Tools & Attachments. The Equipment & Service segment provides equipment and solutions for rock drilling, rock excavation, rock reinforcement, loading and haulage, and ventilation systems, as well as drilling equipment for exploration, and water and energy; and related spare parts and services for the mining and infrastructure industries. This segment offers solutions for automation, digitalization, and electrification. The Tools & Attachments segment provides consumables for rock drilling, such as drill bits and drill rods, as well as tools for exploration drilling and rock reinforcement; ground engaging tools, such as cast lips, teeth, and protective shrouds, as well as digital solutions for the mining industry; and hydraulic attachments, including hydraulic breakers, shears and pulverizers, concrete cutters and busters, drum cutters, excavator grapples, excavator magnets, hydraulic compactors, crusher and screening buckets, auger drive units, and couplers and thumbs, as well as HATCON that is a remote monitoring tool. In addition, the company offers aftermarket services, including new circular services, productivity-enhancing technology-agnostic digital solutions, mid-life upgrades, diesel-to-battery conversions, and remanufacturing of components. Epiroc AB (publ) was founded in 1873 and is headquartered in Nacka, Sweden.

About Smurfit Kappa Group

Smurfit Kappa Group Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland, Germany, France, Mexico, rest of Europe, and other Americas. The company offers e-commerce, retail, consumer, industrial, bottle, protective, heavy-duty, hexacomb, and various punnet packaging products; composite cardboard tubes, bags, and sacks; and bag-in-box, a packaging system that comprises films, accessories, bags, taps, and boxes. It also provides point of sale displays; cardboards of social distancing; corrugated sheet boards, solid board sheets, folding carton sheet boards, sack Kraft papers, MG brown Kraft papers, preprint products, agro-papers, technical papers, BanaBag, and Catcher Board MB12; and various types of containerboards, such as kraftliners, testliners, and containerboard flutings. In addition, the company offers recycling solutions to cardboard and paper products; and supplies packaging machinery. It primarily serves consumer goods, industrial goods, and food and drink sectors. Smurfit Kappa Group Plc was founded in 1934 and is headquartered in Dublin, Ireland.