Head to Head Analysis: Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) and Suzano (NYSE:SUZ)

Suzano (NYSE:SUZ) and Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Earnings & Valuation

This table compares Suzano and Kimberly-Clark de Mexico SAB de CV”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suzano	$8.79 billion	1.35	-$1.31 billion	$0.96	9.32
Kimberly-Clark de Mexico SAB de CV	$3.01 billion	2.10	$429.88 million	$0.61	16.80

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

Insider and Institutional Ownership

2.6% of Suzano shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Suzano 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
Suzano	13.03%	16.39%	4.05%
Kimberly-Clark de Mexico SAB de CV	13.02%	145.62%	14.29%

Volatility and Risk

Suzano has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Kimberly-Clark de Mexico SAB de CV has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Suzano and Kimberly-Clark de Mexico SAB de CV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suzano	0	1	1	2	3.25
Kimberly-Clark de Mexico SAB de CV	0	0	1	0	3.00

Dividends

Suzano pays an annual dividend of $0.26 per share and has a dividend yield of 2.9%. Kimberly-Clark de Mexico SAB de CV pays an annual dividend of $0.11 per share and has a dividend yield of 1.1%. Suzano pays out 27.1% of its earnings in the form of a dividend. Kimberly-Clark de Mexico SAB de CV pays out 18.0% 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.

Summary

Suzano beats Kimberly-Clark de Mexico SAB de CV on 8 of the 14 factors compared between the two stocks.

About Suzano

Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. It operates through Pulp and Paper segments. The company offers coated and uncoated printing and writing papers, paperboards, tissue papers, and market and fluff pulps; and lignin. It also engages in the research, development, and production of biofuel; operation of port terminals; power generation and distribution business; commercialization of equipment and parts; industrialization, commercialization, and exporting of pulp and standing wood; road freight transport; biotechnology research and development; and commercialization of paper and computer materials. In addition, the company is involved in the business office, production packaging, and financial fundraising activities; research, development, production, commercialization, and distribution of wood-based textile fibers, yarns, and filaments produced from cellulose and microfibrillated cellulose; and research and development of wood raw materials for the textile industry. Suzano S.A. was formerly known as Suzano Papel e Celulose S.A. and changed its name to Suzano S.A. in April 2019. The company was founded in 1924 and is headquartered in Salvador, 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.