Rayonier Advanced Materials (NYSE:RYAM – Get Free Report) and Stora Enso Oyj (OTCMKTS:SEOAY – Get Free Report) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.
Institutional & Insider Ownership
68.6% of Rayonier Advanced Materials shares are held by institutional investors. Comparatively, 0.0% of Stora Enso Oyj shares are held by institutional investors. 4.4% of Rayonier Advanced Materials shares are held by company insiders. Comparatively, 8.1% of Stora Enso Oyj shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Rayonier Advanced Materials and Stora Enso Oyj”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rayonier Advanced Materials | $1.63 billion | 0.15 | -$38.71 million | ($1.06) | -3.56 |
| Stora Enso Oyj | $9.79 billion | 0.84 | -$146.08 million | ($0.13) | -80.08 |
Rayonier Advanced Materials has higher earnings, but lower revenue than Stora Enso Oyj. Stora Enso Oyj is trading at a lower price-to-earnings ratio than Rayonier Advanced Materials, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Rayonier Advanced Materials and Stora Enso Oyj’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rayonier Advanced Materials | -4.38% | -4.71% | -1.58% |
| Stora Enso Oyj | -1.01% | -3.74% | -1.93% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Rayonier Advanced Materials and Stora Enso Oyj, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rayonier Advanced Materials | 0 | 0 | 1 | 0 | 3.00 |
| Stora Enso Oyj | 1 | 1 | 1 | 0 | 2.00 |
Rayonier Advanced Materials currently has a consensus target price of $6.00, suggesting a potential upside of 59.15%. Given Rayonier Advanced Materials’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Rayonier Advanced Materials is more favorable than Stora Enso Oyj.
Volatility & Risk
Rayonier Advanced Materials has a beta of 2.51, suggesting that its stock price is 151% more volatile than the S&P 500. Comparatively, Stora Enso Oyj has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.
Summary
Rayonier Advanced Materials beats Stora Enso Oyj on 7 of the 13 factors compared between the two stocks.
About Rayonier Advanced Materials
Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company’s products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. It also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, the company provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books and catalog covers, file folders, tags, and lottery tickets; and high-yield pulps to produces hardwood aspen, maple, and birch species for paperboard, packaging, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.
About Stora Enso Oyj
Stora Enso Oyj provides renewable solutions for the packaging, biomaterials, wooden constructions, and paper industries in Finland and internationally. It operates through Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, Paper, and Other segments. The company's Packaging Materials segment offers virgin and recycled fiber replace fossil-based materials with low-carbon, renewable and recyclable packaging materials for food and beverage, pharmaceutical, and transport packaging. Its Packaging Solutions segment develops and sells fiber-based packaging products and services, including converting corrugated boards and carton boards; and new materials, such as formed fiber and wood foams into standard and bespoke packaging solutions for retail, e-commerce, and industrials. The company's Biomaterials segment provides various pulp for packaging, paper, tissue, specialties, and hygiene product producers; and tall oil and turpentine from biomass. Its Wood Products segment offers wood-based solutions, including digital tools for design and construction of building projects with wood; applications for windows and doors; and pellets for sustainable heating solutions. The company's Forest segment engages in sustainable forest management, as well as supplies wood. Its Paper segments offers portfolio of products for print and office use. The company's Other segment produces electricity and heat. It serves packaging manufacturers, brand owners, paper merchants, publishers, retailers, printing houses, converters, and construction companies. The company was incorporated in 1996 and is headquartered in Helsinki, Finland.
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