Comparing International Paper (NYSE:IP) & AptarGroup (NYSE:ATR)

International Paper (NYSE:IP) and AptarGroup (NYSE:ATR) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Dividends

International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 5.8%. AptarGroup pays an annual dividend of $1.92 per share and has a dividend yield of 1.6%. International Paper pays out -28.4% of its earnings in the form of a dividend. AptarGroup pays out 34.7% 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. AptarGroup has increased its dividend for 31 consecutive years. International Paper is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

International Paper has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, AptarGroup has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Institutional & Insider Ownership

82.0% of International Paper shares are owned by institutional investors. Comparatively, 88.5% of AptarGroup shares are owned by institutional investors. 0.2% of International Paper shares are owned by insiders. Comparatively, 0.7% of AptarGroup shares are owned 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.

Analyst Ratings

This is a summary of current recommendations for International Paper and AptarGroup, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Paper	1	3	10	0	2.64
AptarGroup	0	3	6	0	2.67

International Paper currently has a consensus target price of $47.52, suggesting a potential upside of 49.14%. AptarGroup has a consensus target price of $169.00, suggesting a potential upside of 39.00%. Given International Paper’s higher possible upside, research analysts plainly believe International Paper is more favorable than AptarGroup.

Earnings & Valuation

This table compares International Paper and AptarGroup”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Paper	$23.63 billion	0.71	-$3.52 billion	($6.52)	-4.89
AptarGroup	$3.78 billion	2.05	$392.79 million	$5.53	21.99

AptarGroup has lower revenue, but higher earnings than International Paper. International Paper is trading at a lower price-to-earnings ratio than AptarGroup, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares International Paper and AptarGroup’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Paper	-14.20%	-1.09%	-0.44%
AptarGroup	9.22%	13.31%	6.96%

Summary

AptarGroup beats International Paper on 11 of the 17 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 AptarGroup

AptarGroup, Inc. designs and manufactures a range of drug delivery, consumer product dispensing, and active material science solutions and services for the pharmaceutical, beauty, personal care, home care, and food and beverage markets. The company operates through Aptar Pharma, Aptar Beauty, and Aptar Closures segments. It also provides pumps for nasal allergy treatments; and metered dose inhaler valves for respiratory ailments, such as asthma and chronic obstructive pulmonary diseases; elastomer for injectable primary packaging components; and active material science solutions. In addition, the company offers dispensing pumps, closures, elastomeric components, and aerosol valves to the digital health solutions. It primarily sells its products and services in Asia, Europe, Latin America, and North America. AptarGroup, Inc. was incorporated in 1992 and is headquartered in Crystal Lake, Illinois.