Head to Head Comparison: Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) and International Paper (NYSE:IP)

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

Institutional and Insider Ownership

82.0% of International Paper shares are held by institutional investors. 0.4% of International Paper shares are held by insiders. 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International Paper	-0.12%	2.63%	1.09%
Kimberly-Clark de Mexico SAB de CV	13.36%	135.47%	14.19%

Volatility & Risk

International Paper has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Kimberly-Clark de Mexico SAB de CV has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for International Paper and Kimberly-Clark de Mexico SAB de CV, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Paper	2	2	4	0	2.25
Kimberly-Clark de Mexico SAB de CV	0	1	0	0	2.00

International Paper presently has a consensus price target of $55.4571, indicating a potential upside of 16.02%. Given International Paper’s stronger consensus rating and higher probable upside, equities research analysts clearly believe International Paper is more favorable than Kimberly-Clark de Mexico SAB de CV.

Dividends

International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 3.9%. Kimberly-Clark de Mexico SAB de CV pays an annual dividend of $0.49 per share and has a dividend yield of 5.1%. International Paper pays out -1,850.0% of its earnings in the form of a dividend. Kimberly-Clark de Mexico SAB de CV pays out 79.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Paper	$18.62 billion	1.36	$557.00 million	($0.10)	-478.00
Kimberly-Clark de Mexico SAB de CV	$3.01 billion	1.97	$429.88 million	$0.62	15.50

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

Summary

International Paper beats Kimberly-Clark de Mexico SAB de CV on 9 of the 16 factors compared between the two stocks.

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.

About Kimberly-Clark de Mexico SAB de CV

Kimberly-Clark de México, S. A. B. de C. V., together with its subsidiaries, manufactures, distributes, and markets disposable products in Mexico. The company offers baby diapers, training pants, swim pants, wet wipes, shampoos, creams, bar soaps, and feeding products. It also provides toilet papers, napkins, facial tissues, paper towels, feminine pads, panty liners, tampons, intimate wipes, and menstrual cups. In addition, the company offers pets shampoos, sprays, repellents, and cleaners. Further, it provides liquid hand soap, foaming liquid soap, and liquid body wash; and underwear, protectors, feminine pads, pre-folded products for adults. Additionally, the company offers anti-bacterial gels; disinfectant sprays; face masks; dispensers; hand towels; and industrial cleaning cloths. The company offers its products primarily under the Huggies, KleenBebe, Kleenex, Evenflo, Pétalo, Suavel, Cottonelle, Depend, Kotex, Pull-Ups, GoodNites, Vogue, Delsey, Diapro, LYS, Fancy, Kimberly-Clark, and Escudo brands. The company exports its products. Kimberly-Clark de México, S. A. B. de C. V. was founded in 1925 and is based in Mexico City, Mexico.