Fibria (NYSE: FBR) and Schweitzer-Mauduit International (NYSE:SWM) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
This table compares Fibria and Schweitzer-Mauduit International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Fibria has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500. Comparatively, Schweitzer-Mauduit International has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
Earnings & Valuation
This table compares Fibria and Schweitzer-Mauduit International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fibria||$3.68 billion||2.90||$339.90 million||$0.61||31.61|
|Schweitzer-Mauduit International||$982.00 million||1.38||$34.50 million||$3.18||13.82|
Fibria has higher revenue and earnings than Schweitzer-Mauduit International. Schweitzer-Mauduit International is trading at a lower price-to-earnings ratio than Fibria, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Fibria and Schweitzer-Mauduit International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fibria currently has a consensus price target of $16.25, indicating a potential downside of 15.72%. Schweitzer-Mauduit International has a consensus price target of $47.00, indicating a potential upside of 6.94%. Given Schweitzer-Mauduit International’s stronger consensus rating and higher possible upside, analysts plainly believe Schweitzer-Mauduit International is more favorable than Fibria.
Institutional and Insider Ownership
7.4% of Fibria shares are held by institutional investors. Comparatively, 87.7% of Schweitzer-Mauduit International shares are held by institutional investors. 40.2% of Fibria shares are held by insiders. Comparatively, 1.8% of Schweitzer-Mauduit International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Fibria pays an annual dividend of $0.11 per share and has a dividend yield of 0.6%. Schweitzer-Mauduit International pays an annual dividend of $1.72 per share and has a dividend yield of 3.9%. Fibria pays out 18.0% of its earnings in the form of a dividend. Schweitzer-Mauduit International pays out 54.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Schweitzer-Mauduit International has increased its dividend for 6 consecutive years. Schweitzer-Mauduit International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Schweitzer-Mauduit International beats Fibria on 9 of the 16 factors compared between the two stocks.
Fibria Celulose S.A. produces, sells, and exports short fiber pulp in Brazil and internationally. It manufactures and sells bleached eucalyptus kraft pulp. The company has approximately 1,056,000 hectares of forest base in the states of São Paulo, Minas Gerais, Rio de Janeiro, Espírito Santo, Mato Grosso do Sul, and Bahia. It also exports its products to approximately 35 countries for educational, health, hygiene, and cleaning products. The company was formerly known as Votorantim Celulose e Papel S.A. and changed its name to Fibria Celulose S.A. in November 2009. Fibria Celulose S.A. was founded in 1988 and is headquartered in São Paulo, Brazil.
About Schweitzer-Mauduit International
Schweitzer-Mauduit International, Inc., together with its subsidiaries, provides engineered solutions and advanced materials for various industries worldwide. The company operates through two segments, Engineered Papers and Advanced Materials & Structures. The Engineered Papers segment produces and sells cigarette papers, reconstituted tobacco leaf, and wrapper and binder products to cigarette and cigar manufacturers; and other non-tobacco paper products. It also offers low ignition propensity cigarette paper; and lightweight papers for printing and writing, flooring laminates, and food service packaging. The Advanced Materials & Structures segment manufactures resin-based nets, films, and other non-wovens for filtration, infrastructure and construction, transportation, medical, and industrial applications. Schweitzer-Mauduit International, Inc. was founded in 1995 and is headquartered in Alpharetta, Georgia.
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