International Paper (NYSE:IP – Get Free Report) and Mayr-Melnhof Karton (OTCMKTS:MNHFF – Get Free Report) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.
Analyst Recommendations
This is a summary of current ratings and price targets for International Paper and Mayr-Melnhof Karton, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Paper | 1 | 4 | 9 | 0 | 2.57 |
| Mayr-Melnhof Karton | 0 | 0 | 0 | 0 | 0.00 |
International Paper currently has a consensus price target of $48.75, indicating a potential upside of 30.41%. Given International Paper’s stronger consensus rating and higher possible upside, analysts clearly believe International Paper is more favorable than Mayr-Melnhof Karton.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| International Paper | $23.63 billion | 0.84 | -$3.52 billion | ($6.52) | -5.73 |
| Mayr-Melnhof Karton | N/A | N/A | N/A | $6.35 | 14.59 |
Mayr-Melnhof Karton has lower revenue, but higher earnings than International Paper. International Paper is trading at a lower price-to-earnings ratio than Mayr-Melnhof Karton, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
82.0% of International Paper shares are held by institutional investors. 0.2% of International Paper shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Dividends
International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 4.9%. Mayr-Melnhof Karton pays an annual dividend of $2.40 per share and has a dividend yield of 2.6%. International Paper pays out -28.4% of its earnings in the form of a dividend. Mayr-Melnhof Karton pays out 37.8% 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. International Paper is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares International Paper and Mayr-Melnhof Karton’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Paper | -14.20% | -1.09% | -0.44% |
| Mayr-Melnhof Karton | N/A | N/A | N/A |
Summary
International Paper beats Mayr-Melnhof Karton on 8 of the 13 factors compared between the two stocks.
About International Paper
International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.
About Mayr-Melnhof Karton
Mayr-Melnhof Karton AG manufactures and sells cartonboard and folding cartons in Germany, Austria, and internationally. It operates through two segments, MM Board & Paper and MM Packaging. The MM Board & Paper segment manufactures and markets various grades of cartonboard products, such as coated cartonboard produced from recycling fibers; and virgin fiber based cartonboard, as well as offers kraft papers and uncoated fine papers. This segment primarily serves printing businesses in the fragmented folding carton industry. The MM Packaging segment processes cartonboard into folding cartons primarily for food industry, as well as for other consumer goods industries. This segment also provides leaflets and labels. Mayr-Melnhof Karton AG was founded in 1950 and is based in Vienna, Austria.
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