Clearwater Paper (NYSE:CLW) versus Sylvamo (NYSE:SLVM) Financial Comparison

Clearwater Paper (NYSE:CLW) and Sylvamo (NYSE:SLVM) are both small-cap materials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Valuation and Earnings

This table compares Clearwater Paper and Sylvamo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearwater Paper	$1.56 billion	0.15	-$18.60 million	$0.16	88.53
Sylvamo	$3.35 billion	0.40	$132.00 million	$1.88	18.09

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

Analyst Ratings

This is a summary of recent ratings and target prices for Clearwater Paper and Sylvamo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearwater Paper	1	6	1	0	2.00
Sylvamo	1	3	2	0	2.17

Clearwater Paper presently has a consensus price target of $19.67, indicating a potential upside of 38.84%. Sylvamo has a consensus price target of $41.00, indicating a potential upside of 20.57%. Given Clearwater Paper’s higher probable upside, analysts clearly believe Clearwater Paper is more favorable than Sylvamo.

Volatility & Risk

Clearwater Paper has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Sylvamo has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500.

Profitability

This table compares Clearwater Paper and Sylvamo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clearwater Paper	0.16%	-7.36%	-3.65%
Sylvamo	2.31%	8.36%	2.90%

Institutional & Insider Ownership

90.0% of Clearwater Paper shares are owned by institutional investors. Comparatively, 91.2% of Sylvamo shares are owned by institutional investors. 2.4% of Clearwater Paper shares are owned by company insiders. Comparatively, 0.8% of Sylvamo shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Sylvamo beats Clearwater Paper on 11 of the 14 factors compared between the two stocks.

About Clearwater Paper

Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through Pulp and Paperboard, and Consumer Products segments. The Pulp and Paperboard segment manufactures and markets bleached paperboard; Solid Bleached Sulfate paperboard that is used to produce folding cartons, liquid packaging, cups and plates, blister and carded packaging, and top sheet and commercial printing items; and hardwood and softwood pulp, as well as offers services that include custom sheeting, slitting, and cutting. It sells its products to carton converters, folding carton converters, merchants, and commercial printers. The Consumer Products segment provides a line of at-home tissue products, including bath tissues, paper towels, facial tissues, and napkins; recycled fiber value grade products; and away-from-home tissues. This segment sells its products to retailers, including grocery, club, mass merchants, and discount stores. The company was incorporated in 2005 and is based in Spokane, Washington.

About Sylvamo

Sylvamo Corporation produces and markets uncoated freesheet for cutsize, offset paper, and pulp in Latin America, Europe, and North America. The company operates through Europe, Latin America, and North America segments. The Europe segment offers copy, tinted, and colored laser printing paper under REY Adagio and Pro-Design brands; and graphic and high-speed inkjet printing papers under the brand Jetstar; as well as produces uncoated freesheet papers. The Latin America segment focuses on uncoated freesheet paper under Chamex, Chamequinho and Chambril brands, as well as produces HP papers. This segment also operates integrated mills and non-integrated mills. The North America segment offers imaging, commercial printing, and converting papers, as well as uncoated papers under Hammermill, Springhill, Williamsburg, Accent, DRM and Postmark brand names. It distributes its products through a variety of channels, including retail merchants, e-commerce, agents, resellers, and paper distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.