Sappi (OTCMKTS: SPPJY) is one of 22 public companies in the “PAPER” industry, but how does it contrast to its rivals? We will compare Sappi to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Dividends

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Sappi pays an annual dividend of $0.14 per share and has a dividend yield of 2.1%. Sappi pays out 24.6% of its earnings in the form of a dividend. As a group, “PAPER” companies pay a dividend yield of 2.5% and pay out 24.1% of their earnings in the form of a dividend. Sappi lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Sappi has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Sappi’s rivals have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Valuation and Earnings

This table compares Sappi and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sappi $5.30 billion $338.00 million 11.45
Sappi Competitors $5.69 billion $1.15 billion 14.87

Sappi’s rivals have higher revenue and earnings than Sappi. Sappi 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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sappi 0 0 0 0 N/A
Sappi Competitors 128 469 530 31 2.40

As a group, “PAPER” companies have a potential upside of 9.70%. Given Sappi’s rivals higher probable upside, analysts plainly believe Sappi has less favorable growth aspects than its rivals.

Profitability

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

Net Margins Return on Equity Return on Assets
Sappi 5.85% 19.53% 6.42%
Sappi Competitors 18.25% 10.77% 3.69%

Institutional & Insider Ownership

0.0% of Sappi shares are owned by institutional investors. Comparatively, 64.8% of shares of all “PAPER” companies are owned by institutional investors. 0.7% of Sappi shares are owned by insiders. Comparatively, 5.6% of shares of all “PAPER” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Sappi rivals beat Sappi on 9 of the 12 factors compared.

Sappi Company Profile

Sappi Limited is a woodfiber company focused on providing graphic/printing papers, packaging and specialty papers, dissolving wood pulp (DWP), as well as products in adjacent fields, including nanocellulose and lignosulfonate. The Company’s segments include North America, Europe and Southern Africa. Its range of graphic paper products is used by printers in the production of books, brochures, magazines, catalogues, direct mail and various other print applications; packaging and specialty papers are used in the manufacture of such products as soup sachets, carry bags, cosmetic and confectionery packaging, boxes for agricultural products for export, tissue wadding for household tissue products and casting release papers used by suppliers to the fashion, textiles, automobile and household industries, and DWP products are used around the world by converters to create viscose fiber for clothing and textiles, pharmaceutical products, as well as a range of consumer and household products.

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