Rayonier Advanced Materials (NYSE:RYAM – Get Free Report) and Sherwin-Williams (NYSE:SHW – Get Free Report) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.
Analyst Recommendations
This is a summary of current ratings and target prices for Rayonier Advanced Materials and Sherwin-Williams, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rayonier Advanced Materials | 1 | 1 | 1 | 0 | 2.00 |
| Sherwin-Williams | 0 | 10 | 16 | 1 | 2.67 |
Rayonier Advanced Materials presently has a consensus target price of $13.00, suggesting a potential upside of 86.38%. Sherwin-Williams has a consensus target price of $382.08, suggesting a potential upside of 14.83%. Given Rayonier Advanced Materials’ higher probable upside, equities research analysts clearly believe Rayonier Advanced Materials is more favorable than Sherwin-Williams.
Risk & Volatility
Rayonier Advanced Materials has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500. Comparatively, Sherwin-Williams has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.
Valuation and Earnings
This table compares Rayonier Advanced Materials and Sherwin-Williams”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rayonier Advanced Materials | $1.47 billion | 0.32 | -$420.67 million | ($2.10) | -3.32 |
| Sherwin-Williams | $23.57 billion | 3.43 | $2.57 billion | $10.85 | 30.67 |
Sherwin-Williams has higher revenue and earnings than Rayonier Advanced Materials. Rayonier Advanced Materials is trading at a lower price-to-earnings ratio than Sherwin-Williams, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Rayonier Advanced Materials and Sherwin-Williams’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rayonier Advanced Materials | -9.53% | -46.19% | -7.28% |
| Sherwin-Williams | 11.01% | 67.97% | 11.16% |
Insider & Institutional Ownership
68.6% of Rayonier Advanced Materials shares are owned by institutional investors. Comparatively, 77.7% of Sherwin-Williams shares are owned by institutional investors. 3.2% of Rayonier Advanced Materials shares are owned by company insiders. Comparatively, 0.2% of Sherwin-Williams shares are owned by company 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
Sherwin-Williams beats Rayonier Advanced Materials on 12 of the 15 factors compared between the two stocks.
About Rayonier Advanced Materials
Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company’s products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. It also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, the company provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books and catalog covers, file folders, tags, and lottery tickets; and high-yield pulps to produces hardwood aspen, maple, and birch species for paperboard, packaging, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.
About Sherwin-Williams
The Sherwin-Williams Company engages in the development, manufacture, distribution, and sale of paints, coating, and related products to professional, industrial, commercial, and retail customers. It operates through three segments: Paint Stores Group, Consumer Brands Group, and Performance Coatings Group. The Paint Stores Group segment offers architectural paints and coatings, and protective and marine products, as well as OEM product finishes and related products for architectural and industrial paint contractors, and do-it-yourself homeowners. The Consumer Brands Group segment supplies a portfolio of branded and private-label architectural paints, stains, varnishes, industrial products, wood finishes products, wood preservatives, applicators, corrosion inhibitors, aerosols, caulks, and adhesives to retailers, including home centers and hardware stores, and dedicated dealers and distributors. The Performance Coatings Group segment develops and sells industrial coatings for wood finishing and general industrial applications, automotive refinish products, protective and marine coatings, coil coatings, packaging coatings, and performance-based resins and colorants. It serves retailers, dealers, jobbers, licensees, and other third-party distributors through its branches and direct sales staff, as well as through outside sales representatives. The company has operations primarily in the North and South America, the Caribbean, Europe, Asia, and Australia. The Sherwin-Williams Company was founded in 1866 and is headquartered in Cleveland, Ohio.
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