Smurfit Kappa Group (SMFTF) versus Its Competitors Critical Review

Valuation & Earnings

This table compares Smurfit Kappa Group and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Smurfit Kappa Group	N/A	N/A	38.02
Smurfit Kappa Group Competitors	$8.21 billion	$208.36 million	14.91

Smurfit Kappa Group’s rivals have higher revenue and earnings than Smurfit Kappa Group. Smurfit Kappa Group is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Smurfit Kappa Group pays an annual dividend of $0.46 per share and has a dividend yield of 1.0%. Smurfit Kappa Group pays out 38.8% of its earnings in the form of a dividend. As a group, “Containers & Packaging” companies pay a dividend yield of 5.1% and pay out -109.2% of their earnings in the form of a dividend. Smurfit Kappa Group lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider & Institutional Ownership

41.9% of Smurfit Kappa Group shares are held by institutional investors. Comparatively, 54.4% of shares of all “Containers & Packaging” companies are held by institutional investors. 13.5% of shares of all “Containers & Packaging” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Smurfit Kappa Group and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smurfit Kappa Group	N/A	N/A	N/A
Smurfit Kappa Group Competitors	-28.76%	-31.82%	2.15%

Summary

Smurfit Kappa Group rivals beat Smurfit Kappa Group on 6 of the 9 factors compared.

About Smurfit Kappa Group

Smurfit Kappa Group Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland, Germany, France, Mexico, rest of Europe, and other Americas. The company offers e-commerce, retail, consumer, industrial, bottle, protective, heavy-duty, hexacomb, and various punnet packaging products; composite cardboard tubes, bags, and sacks; and bag-in-box, a packaging system that comprises films, accessories, bags, taps, and boxes. It also provides point of sale displays; cardboards of social distancing; corrugated sheet boards, solid board sheets, folding carton sheet boards, sack Kraft papers, MG brown Kraft papers, preprint products, agro-papers, technical papers, BanaBag, and Catcher Board MB12; and various types of containerboards, such as kraftliners, testliners, and containerboard flutings. In addition, the company offers recycling solutions to cardboard and paper products; and supplies packaging machinery. It primarily serves consumer goods, industrial goods, and food and drink sectors. Smurfit Kappa Group Plc was founded in 1934 and is headquartered in Dublin, Ireland.