Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) and Klabin (OTCMKTS:KLBAY) Head-To-Head Survey

Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) and Klabin (OTCMKTS:KLBAY) are both materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Profitability

This table compares Kimberly-Clark de Mexico SAB de CV and Klabin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimberly-Clark de Mexico SAB de CV	14.09%	179.50%	15.12%
Klabin	0.80%	1.11%	0.27%

Risk & Volatility

Kimberly-Clark de Mexico SAB de CV has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Klabin has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Valuation and Earnings

This table compares Kimberly-Clark de Mexico SAB de CV and Klabin”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimberly-Clark de Mexico SAB de CV	$2.89 billion	2.25	$395.75 million	$0.75	14.08
Klabin	$3.71 billion	5.29	$251.30 million	$0.14	44.89

Kimberly-Clark de Mexico SAB de CV has higher earnings, but lower revenue than Klabin. Kimberly-Clark de Mexico SAB de CV is trading at a lower price-to-earnings ratio than Klabin, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Kimberly-Clark de Mexico SAB de CV and Klabin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimberly-Clark de Mexico SAB de CV	0	3	0	0	2.00
Klabin	0	2	0	0	2.00

Dividends

Kimberly-Clark de Mexico SAB de CV pays an annual dividend of $0.54 per share and has a dividend yield of 5.1%. Klabin pays an annual dividend of $0.18 per share and has a dividend yield of 2.9%. Kimberly-Clark de Mexico SAB de CV pays out 72.0% of its earnings in the form of a dividend. Klabin pays out 128.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimberly-Clark de Mexico SAB de CV is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Kimberly-Clark de Mexico SAB de CV beats Klabin on 8 of the 11 factors compared between the two stocks.

About Kimberly-Clark de Mexico SAB de CV

Kimberly-Clark de México, S.A.B. de C.V. manufactures and markets personal care and household paper products. Its offerings include diapers, feminine care and adult incontinence products, as well as bathroom tissue, facial tissue, paper towels and napkins. The company sells products under brands including Huggies, Kleenex, Kotex, Depend, Pétalo and Suavel. Its products serve consumers and institutional customers, including businesses and other professional users. Founded in 1925, Kimberly-Clark de México serves the Mexican market and also exports products to other countries in the region.

About Klabin

Klabin is a Brazilian paper and packaging company with an integrated business that spans forestry, pulp production, paper manufacturing and conversion into finished packaging. Founded in 1899, the company is headquartered in São Paulo, Brazil. Its products include market pulp made from eucalyptus and pine, fluff pulp, containerboard, corrugated boxes, industrial paper bags and other paper-based packaging. Klabin also manages planted forests that supply much of the wood used in its operations. Klabin serves customers in Brazil and international markets, supplying industries that include food and beverages, e-commerce, personal care and agriculture.