Head to Head Analysis: International Paper (NYSE:IP) vs. DS Smith (OTCMKTS:DITHF)

DS Smith (OTCMKTS:DITHF) and International Paper (NYSE:IP) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for DS Smith and International Paper, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DS Smith	0	0	0	0	0.00
International Paper	1	4	9	0	2.57

International Paper has a consensus target price of $48.75, suggesting a potential upside of 18.55%. Given International Paper’s stronger consensus rating and higher probable upside, analysts plainly believe International Paper is more favorable than DS Smith.

Risk and Volatility

DS Smith has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, International Paper has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Valuation & Earnings

This table compares DS Smith and International Paper”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DS Smith	$8.57 billion	1.16	$484.18 million	N/A	N/A
International Paper	$23.63 billion	0.92	-$3.52 billion	($6.52)	-6.31

DS Smith has higher earnings, but lower revenue than International Paper.

Insider & Institutional Ownership

82.0% of International Paper shares are held by institutional investors. 0.2% of International Paper shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares DS Smith and International Paper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DS Smith	N/A	N/A	N/A
International Paper	-14.20%	-1.09%	-0.44%

Summary

International Paper beats DS Smith on 7 of the 12 factors compared between the two stocks.

About DS Smith

DS Smith Plc provides packaging solutions, paper products, and recycling services worldwide. The company offers transit and transport, consumer, retail and shelf ready, heavy duty, fiber base pallets, automotive standard, multi-material, dangerous goods, and e-commerce packaging, as well as packaging for food and drinks, health and beauty, apparel and footwear, home and DIY, and consumer electronics. It also provides various recycling and waste management services, including total waste management, paper and cardboard recycling, confidential shredding, and plastics recycling, as well as recycling solutions for the retail, manufacturing, print and publishing, paper mills, automotive, pharmaceutical, and public sectors. In addition, the company offers brown, white, and kraft liners; medium/fluting grades; dual-use grades; coated papers; and specialty papers, as well as technical and supply chain services, as well as point of sale display solutions and packaging machine systems. The company was formerly known as David S. Smith (Holdings) PLC and changed its name to DS Smith Plc in 2001. DS Smith Plc was founded in 1940 and is headquartered in London, the United Kingdom.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.