Rayonier Advanced Materials (RYAM) vs. The Competition Critical Contrast
Rayonier Advanced Materials (NYSE: RYAM) is one of 52 public companies in the “Specialty Chemicals” industry, but how does it weigh in compared to its peers? We will compare Rayonier Advanced Materials to similar companies based on the strength of its institutional ownership, risk, profitability, valuation, analyst recommendations, earnings and dividends.
This table compares Rayonier Advanced Materials and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rayonier Advanced Materials||5.71%||24.17%||3.63%|
|Rayonier Advanced Materials Competitors||-2.33%||7.60%||3.98%|
Institutional & Insider Ownership
93.5% of Rayonier Advanced Materials shares are owned by institutional investors. Comparatively, 69.9% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 2.1% of Rayonier Advanced Materials shares are owned by insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies 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.
Earnings & Valuation
This table compares Rayonier Advanced Materials and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Rayonier Advanced Materials||$840.05 million||$202.73 million||17.09|
|Rayonier Advanced Materials Competitors||$1.95 billion||$301.80 million||16.76|
Rayonier Advanced Materials’ peers have higher revenue and earnings than Rayonier Advanced Materials. Rayonier Advanced Materials is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of recent ratings and recommmendations for Rayonier Advanced Materials and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rayonier Advanced Materials||0||0||5||0||3.00|
|Rayonier Advanced Materials Competitors||255||1208||1324||33||2.40|
Rayonier Advanced Materials presently has a consensus price target of $18.80, indicating a potential upside of 37.53%. As a group, “Specialty Chemicals” companies have a potential downside of 1.78%. Given Rayonier Advanced Materials’ stronger consensus rating and higher possible upside, analysts plainly believe Rayonier Advanced Materials is more favorable than its peers.
Rayonier Advanced Materials pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. Rayonier Advanced Materials pays out 35.0% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.4% and pay out 27.3% of their earnings in the form of a dividend.
Volatility and Risk
Rayonier Advanced Materials has a beta of 4.29, indicating that its share price is 329% more volatile than the S&P 500. Comparatively, Rayonier Advanced Materials’ peers have a beta of 1.58, indicating that their average share price is 58% more volatile than the S&P 500.
Rayonier Advanced Materials beats its peers on 8 of the 15 factors compared.
About Rayonier Advanced Materials
Rayonier Advanced Materials Inc. is engaged in the production of cellulose specialties. The Company’s product lines include cellulose specialties and commodity products. Its products are used in manufacturing processes. The Company’s products are sold throughout the world to companies for use in various industrial applications, and to produce a range of products, including cigarette filters, foods, pharmaceuticals, textiles and electronics. The Company focuses on producing various forms of cellulose specialties products, such as cellulose acetate and cellulose ethers. The Company’s production facilities are located in Jesup, Georgia and Fernandina Beach, Florida. The Jesup plant can produce cellulose specialties or commodity products using both hardwood and softwood in a pre-hydrolyzed kraft or high potential of hydrogen (pH) cooking process. The Fernandina Beach plant can produce cellulose specialties or commodity products using softwood in a sulfite or low pH cooking process.
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