Reviewing Suzano (NYSE:SUZ) and Klabin (OTCMKTS:KLBAY)

Suzano (NYSE:SUZ) and Klabin (OTCMKTS:KLBAY) are both large-cap materials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, institutional ownership and earnings.

Volatility and Risk

Suzano has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, Klabin has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Profitability

This table compares Suzano and Klabin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suzano	15.98%	14.29%	4.11%
Klabin	0.80%	1.11%	0.27%

Dividends

Suzano pays an annual dividend of $0.18 per share and has a dividend yield of 1.9%. Klabin pays an annual dividend of $0.17 per share and has a dividend yield of 2.7%. Suzano pays out 13.8% of its earnings in the form of a dividend. Klabin pays out 121.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent recommendations for Suzano and Klabin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suzano	0	2	2	0	2.50
Klabin	0	2	0	0	2.00

Suzano currently has a consensus price target of $13.20, indicating a potential upside of 36.86%. Given Suzano’s stronger consensus rating and higher probable upside, equities analysts plainly believe Suzano is more favorable than Klabin.

Insider & Institutional Ownership

2.5% of Suzano shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Suzano and Klabin”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suzano	$8.97 billion	1.33	$2.40 billion	$1.30	7.42
Klabin	$3.71 billion	5.38	$251.30 million	$0.14	45.64

Suzano has higher revenue and earnings than Klabin. Suzano is trading at a lower price-to-earnings ratio than Klabin, indicating that it is currently the more affordable of the two stocks.

Summary

Suzano beats Klabin on 11 of the 15 factors compared between the two stocks.

About Suzano

Suzano (NYSE: SUZ) is a Brazilian company that produces eucalyptus pulp and paper products. Its portfolio includes pulp used in tissue, printing and writing paper, and packaging, as well as finished paper products such as tissue and consumer goods. The company also develops products and solutions made from renewable wood-based materials. Tracing its origins to 1924, Suzano helped pioneer the use of eucalyptus as a source of pulp. In 2019, it combined with pulp producer Fibria, expanding its scale and production operations.

About Klabin

Klabin is a Brazilian paper and packaging company with an integrated business that spans forestry, pulp production, paper manufacturing and conversion into finished packaging. Founded in 1899, the company is headquartered in São Paulo, Brazil. Its products include market pulp made from eucalyptus and pine, fluff pulp, containerboard, corrugated boxes, industrial paper bags and other paper-based packaging. Klabin also manages planted forests that supply much of the wood used in its operations. Klabin serves customers in Brazil and international markets, supplying industries that include food and beverages, e-commerce, personal care and agriculture.