Analyzing Klabin (OTCMKTS:KLBAY) and Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY)

Klabin (OTCMKTS:KLBAY) and Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) are both materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Dividends

Klabin pays an annual dividend of $0.18 per share and has a dividend yield of 2.8%. Kimberly-Clark de Mexico SAB de CV pays an annual dividend of $0.57 per share and has a dividend yield of 5.3%. Klabin pays out 128.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimberly-Clark de Mexico SAB de CV pays out 76.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimberly-Clark de Mexico SAB de CV is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Klabin and Kimberly-Clark de Mexico SAB de CV”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Klabin	$3.71 billion	5.38	$251.30 million	$0.14	45.66
Kimberly-Clark de Mexico SAB de CV	$2.89 billion	2.28	$395.75 million	$0.75	14.25

Kimberly-Clark de Mexico SAB de CV has lower revenue, but higher earnings than Klabin. Kimberly-Clark de Mexico SAB de CV is trading at a lower price-to-earnings ratio than Klabin, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Klabin and Kimberly-Clark de Mexico SAB de CV, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Klabin	0	2	0	0	2.00
Kimberly-Clark de Mexico SAB de CV	0	3	0	0	2.00

Risk & Volatility

Klabin has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Kimberly-Clark de Mexico SAB de CV has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Profitability

This table compares Klabin and Kimberly-Clark de Mexico SAB de CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Klabin	0.80%	1.11%	0.27%
Kimberly-Clark de Mexico SAB de CV	14.09%	179.50%	15.12%

Summary

Kimberly-Clark de Mexico SAB de CV beats Klabin on 8 of the 11 factors compared between the two stocks.

About Klabin

Klabin S.A., together with its subsidiaries, produces and exports packaging paper and sustainable paper packaging solutions in Brazil and internationally. The company engages in the planting of pine and eucalyptus; and forestry management business. It also produces and sells hardwood (eucalyptus), softwood (pine), and fluffed pulp; and paperboard, sackraft, Kraftliner paper, and recycled paper. In addition, the company offers industrial bags, corrugated boxes, and other packaging products. Klabin S.A. was founded in 1899 and is headquartered in São Paulo, Brazil.

About Kimberly-Clark de Mexico SAB de CV

Kimberly-Clark de México, S. A. B. de C. V., together with its subsidiaries, manufactures, distributes, and markets disposable products in Mexico. The company offers baby diapers, training pants, swim pants, wet wipes, shampoos, creams, bar soaps, and feeding products. It also provides toilet papers, napkins, facial tissues, paper towels, feminine pads, panty liners, tampons, intimate wipes, and menstrual cups. In addition, the company offers pets shampoos, sprays, repellents, and cleaners. Further, it provides liquid hand soap, foaming liquid soap, and liquid body wash; and underwear, protectors, feminine pads, pre-folded products for adults. Additionally, the company offers anti-bacterial gels; disinfectant sprays; face masks; dispensers; hand towels; and industrial cleaning cloths. The company offers its products primarily under the Huggies, KleenBebe, Kleenex, Evenflo, Pétalo, Suavel, Cottonelle, Depend, Kotex, Pull-Ups, GoodNites, Vogue, Delsey, Diapro, LYS, Fancy, Kimberly-Clark, and Escudo brands. The company exports its products. Kimberly-Clark de México, S. A. B. de C. V. was founded in 1925 and is based in Mexico City, Mexico.