Suzano (NYSE:SUZ) and UPM-Kymmene (OTCMKTS:UPMKY) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.

Valuation and Earnings

This table compares Suzano and UPM-Kymmene’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Suzano $3.68 billion 2.48 $87.47 million N/A N/A
UPM-Kymmene $12.38 billion 1.14 $1.77 billion $2.65 9.98

UPM-Kymmene has higher revenue and earnings than Suzano.

Dividends

Suzano pays an annual dividend of $0.21 per share and has a dividend yield of 1.3%. UPM-Kymmene pays an annual dividend of $1.21 per share and has a dividend yield of 4.6%. UPM-Kymmene pays out 45.7% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Suzano and UPM-Kymmene, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Suzano 0 1 0 0 2.00
UPM-Kymmene 0 0 0 0 N/A

Insider & Institutional Ownership

1.0% of Suzano shares are owned by institutional investors. Comparatively, 0.6% of UPM-Kymmene shares are owned by institutional investors. 1.0% of UPM-Kymmene shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Suzano and UPM-Kymmene’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Suzano 4.42% 5.44% 1.17%
UPM-Kymmene 13.76% 12.57% 8.65%

Summary

UPM-Kymmene beats Suzano on 7 of the 11 factors compared between the two stocks.

Suzano Company Profile

Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. The company offers coated and uncoated printing and writing papers, paperboards, tissue paper, market pulp, and fluff pulp; and lignin and its byproducts. It also engages in the plant genetic research and development for forestry, biopower, and biofuel industries. In addition, the company owns a hydroelectric plant located in the cities of Carlos Chagas and Pavão. Further, it operates a forestry base of approximately 1.2 million hectares comprising 520,000 hectares of planted forests in the states of Bahia, Espírito Santo, São Paulo, Minas Gerais, Maranhão, Tocantins, Pará, and Piauí, as well as approximately 488,000 hectares of preservation areas. The company was formerly known as Suzano Papel e Celulose S.A. and changed its name to Suzano S.A. in April 2019. The company was founded in 1924 and is headquartered in Salvador, Brazil. Suzano S.A. is a subsidiary of Suzano Holding S.A.

UPM-Kymmene Company Profile

UPM-Kymmene Oyj operates in the forest-based bio industry. It operates through UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and Other operations segments. The company provides eucalyptus, birch, and softwood pulp grades for tissue, specialty and graphic papers, boards, and packaging; sawn timber for construction, packaging, distribution, joinery, and furniture industries; and wood-based renewable diesel and renewable naphtha for fuel distributors, transportation, and oil and petrochemicals industries. It is also involved in the generation of electricity through hydro, nuclear, and condensing power plants. In addition, the company offers self-adhesive papers and film label stocks for product and information labelling to label printers and brand owners in food, beverage, personal care, pharmaceutical, and retail segments; label papers and release liners, fine papers, and flexible packaging, as well as label and packaging papers production lines for retailers, printers, publishers, distributors, and paper converters; and graphic papers for advertising, magazines, newspapers, and home and office to publishers, cataloguers, retailers, printers, and merchants. Further, it provides plywood and veneer products for construction, vehicle flooring, liquefied natural gas shipbuilding, and other manufacturing industries; wood and wood-based biomass, and forestry services for woodland and forest owners; outdoor products for construction, and granulates for injection molding and extrusion; wood-based lignin products for industrial use and cell culture hydrogel products for biomedical applications; and biomedical products. The company primarily operates in Europe, North America, and Asia. UPM-Kymmene Oyj was founded in 1995 and is headquartered in Helsinki, Finland.

Receive News & Ratings for Suzano Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Suzano and related companies with MarketBeat.com's FREE daily email newsletter.