Kapstone (NYSE: KS) and Stora Enso OYJ (OTCMKTS:SEOAY) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
This table compares Kapstone and Stora Enso OYJ’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stora Enso OYJ||6.26%||12.35%||6.10%|
Kapstone has a beta of 3.02, indicating that its stock price is 202% more volatile than the S&P 500. Comparatively, Stora Enso OYJ has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.
Institutional and Insider Ownership
84.9% of Kapstone shares are owned by institutional investors. Comparatively, 0.1% of Stora Enso OYJ shares are owned by institutional investors. 13.1% of Kapstone shares are owned by insiders. Comparatively, 8.1% of Stora Enso OYJ shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Kapstone and Stora Enso OYJ’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kapstone||$3.32 billion||1.01||$243.50 million||$1.32||26.01|
|Stora Enso OYJ||$11.35 billion||1.25||$693.59 million||$1.01||17.76|
Stora Enso OYJ has higher revenue and earnings than Kapstone. Stora Enso OYJ is trading at a lower price-to-earnings ratio than Kapstone, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Kapstone and Stora Enso OYJ, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stora Enso OYJ||0||0||0||0||N/A|
Kapstone presently has a consensus target price of $29.33, suggesting a potential downside of 14.55%. Given Kapstone’s higher possible upside, research analysts plainly believe Kapstone is more favorable than Stora Enso OYJ.
Kapstone pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Stora Enso OYJ pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. Kapstone pays out 30.3% of its earnings in the form of a dividend. Stora Enso OYJ pays out 31.7% 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.
Kapstone beats Stora Enso OYJ on 10 of the 15 factors compared between the two stocks.
KapStone Paper and Packaging Corporation produces and sells a range of containerboards, corrugated products, and specialty paper products in the United States and internationally. The company operates in two segments, Paper and Packaging, and Distribution. The Paper and Packaging segment offers containerboards consisting of linerboard and corrugated medium to manufacture corrugated containers for packaging products; and corrugated products. It also offers specialty paper products, including kraft paper, such as multiwall paper used to produce bags for agricultural products, pet food, baking products, cement and chemicals; specialty products comprising shingle wraps, end caps, roll wraps, and dunnage bags; and lightweight paper. In addition, this segment provides saturating kraft paper under the Durasorb trade name for use in construction, electronics manufacturing, and furniture manufacturing industries; and unbleached folding carton board under the Kraftpak trade name to integrated and independent converters in the folding carton industry. The Distribution segment distributes corrugated and other specialty packaging products consisting of stretch films, void fills, carton sealing tapes, and other specialty tapes. KapStone Paper and Packaging Corporation was founded in 2005 and is headquartered in Northbrook, Illinois.
About Stora Enso OYJ
Stora Enso Oyj is a provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. The Company’s segments include Consumer Board, Packaging Solutions, Biomaterials, Wood Products, Paper and Other. The Consumer Board segment develops and provides consumer packaging boards for printing and packaging applications. The Packaging Solutions segment develops fiber-based packaging, and operates at every stage of the value chain from pulp production, material and packaging production to recycling. The Biomaterials segment offers pulp grades for paper, board, tissue, textile and hygiene product producers. The Wood Products segment provides wood-based solutions for building and housing. The Paper segment provides paper solutions for print media and office use. The Other segment includes the Nordic forest equity accounted investments. It serves publishers, retailers, printing houses, merchants, converters and joinery, and construction companies.
Receive News & Ratings for Kapstone Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kapstone and related companies with MarketBeat.com's FREE daily email newsletter.