Critical Survey: Lee & Man Paper Manufacturing (OTCMKTS:LMPMY) and UPM-Kymmene (OTCMKTS:UPMKY)

Valuation and Earnings

This table compares UPM-Kymmene and Lee & Man Paper Manufacturing”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UPM-Kymmene	$12.38 billion	1.14	$1.77 billion	$2.65	9.98
Lee & Man Paper Manufacturing	N/A	N/A	N/A	$4.02	1.41

UPM-Kymmene has higher revenue and earnings than Lee & Man Paper Manufacturing. Lee & Man Paper Manufacturing is trading at a lower price-to-earnings ratio than UPM-Kymmene, indicating that it is currently the more affordable of the two stocks.

Dividends

UPM-Kymmene pays an annual dividend of $1.21 per share and has a dividend yield of 4.6%. Lee & Man Paper Manufacturing pays an annual dividend of $0.24 per share and has a dividend yield of 4.2%. UPM-Kymmene pays out 45.7% of its earnings in the form of a dividend. Lee & Man Paper Manufacturing pays out 6.0% 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.

Profitability

This table compares UPM-Kymmene and Lee & Man Paper Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UPM-Kymmene	13.76%	12.57%	8.65%
Lee & Man Paper Manufacturing	N/A	N/A	N/A

Institutional & Insider Ownership

0.6% of UPM-Kymmene shares are owned by institutional investors. Comparatively, 0.0% of Lee & Man Paper Manufacturing shares are owned by institutional investors. 1.0% of UPM-Kymmene shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

UPM-Kymmene beats Lee & Man Paper Manufacturing on 8 of the 10 factors compared between the two stocks.

About UPM-Kymmene

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.

About Lee & Man Paper Manufacturing

Lee & Man Paper Manufacturing Limited, an investment holding company, engages in the manufacture and trading of packaging papers, pulps, and tissue papers in the People's Republic of China, Vietnam, Malaysia, Macau, and Hong Kong. The company operates through Packaging Paper, Tissue Paper, and Pulp segments. It offers various pulp products, such as dissolved pulps for use in viscose chemical fibers, bamboo fibers, glass papers, acetate fibers, refined rayons, etc.; unbleached bamboo kraft pulps for use in ecru life papers, environmental table wares, food bags, etc.; and bleached bamboo kraft pulps for use in tissue papers, fine papers, cigarette papers, cup papers, etc. The company also provides containerboard products, including kraft and test linerboards for use in cartons, graphic carton, paper bags, file boxes, paperboards, wall papers, etc.; and corrugating liners for use in corrugated layer and septi-layer of paperboards, and honeycomb-like products. In addition, it offers coated duplex board products for use in graphic cartons, color card printing, and offset printing, as well as in packaging of commodities, household appliances, IT products, medicine/health care products, food products, toys, gifts, ceramic products, stationery products, beverages, etc.; toilet rolls; and unbleached paper for use in various applications, such as baby care, menstruation, facial, sensitive skin, table, kitchen, etc. Lee & Man Paper Manufacturing Limited was founded in 1994 and is headquartered in North Point, Hong Kong.