Reviewing Clearwater Paper (NYSE:CLW) and Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY)

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

Profitability

This table compares Clearwater 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
Clearwater Paper	12.98%	-4.11%	-1.76%
Kimberly-Clark de Mexico SAB de CV	13.36%	135.47%	14.19%

Analyst Ratings

This is a breakdown of current recommendations for Clearwater Paper and Kimberly-Clark de Mexico SAB de CV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearwater Paper	1	0	4	0	2.60
Kimberly-Clark de Mexico SAB de CV	0	1	0	0	2.00

Clearwater Paper currently has a consensus target price of $32.00, indicating a potential upside of 61.91%. Given Clearwater Paper’s stronger consensus rating and higher probable upside, analysts clearly believe Clearwater Paper is more favorable than Kimberly-Clark de Mexico SAB de CV.

Insider and Institutional Ownership

90.0% of Clearwater Paper shares are owned by institutional investors. 3.6% of Clearwater Paper shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Clearwater Paper has a beta of 0.17, indicating that its share price is 83% less volatile than the S&P 500. Comparatively, Kimberly-Clark de Mexico SAB de CV has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearwater Paper	$1.38 billion	0.23	$196.30 million	$12.05	1.64
Kimberly-Clark de Mexico SAB de CV	$3.01 billion	1.96	$429.88 million	$0.62	15.43

Kimberly-Clark de Mexico SAB de CV has higher revenue and earnings than Clearwater Paper. Clearwater 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

Kimberly-Clark de Mexico SAB de CV beats Clearwater Paper on 8 of the 14 factors compared between the two stocks.

About Clearwater Paper

Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through Pulp and Paperboard, and Consumer Products segments. The Pulp and Paperboard segment manufactures and markets bleached paperboard; Solid Bleached Sulfate paperboard that is used to produce folding cartons, liquid packaging, cups and plates, blister and carded packaging, and top sheet and commercial printing items; and hardwood and softwood pulp, as well as offers services that include custom sheeting, slitting, and cutting. It sells its products to carton converters, folding carton converters, merchants, and commercial printers. The Consumer Products segment provides a line of at-home tissue products, including bath tissues, paper towels, facial tissues, and napkins; recycled fiber value grade products; and away-from-home tissues. This segment sells its products to retailers, including grocery, club, mass merchants, and discount stores. The company was incorporated in 2005 and is based in Spokane, Washington.

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.