Posted by admin on Aug 15th, 2022

Mativ (NYSE:MATV – Get Rating) and UPM-Kymmene (OTCMKTS:UPMKY – Get Rating) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.

This table compares Mativ and UPM-Kymmene’s revenue, earnings per share and valuation.

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

Mativ pays an annual dividend of $1.76 per share and has a dividend yield of 7.3%. UPM-Kymmene pays an annual dividend of $1.21 per share and has a dividend yield of 4.6%. Mativ pays out 71.3% of its earnings in the form of a dividend. UPM-Kymmene pays out 45.7% 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.

This table compares Mativ and UPM-Kymmene’s net margins, return on equity and return on assets.

This is a breakdown of current ratings and recommmendations for Mativ and UPM-Kymmene, as reported by MarketBeat.com.

UPM-Kymmene has a consensus price target of $39.00, suggesting a potential upside of 47.45%. Given UPM-Kymmene’s higher possible upside, analysts clearly believe UPM-Kymmene is more favorable than Mativ.

85.5% of Mativ shares are held by institutional investors. Comparatively, 0.6% of UPM-Kymmene shares are held by institutional investors. 1.8% of Mativ shares are held by company insiders. Comparatively, 1.0% of UPM-Kymmene shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Mativ has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, UPM-Kymmene has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.

UPM-Kymmene beats Mativ on 10 of the 14 factors compared between the two stocks.

Mativ Holdings, Inc., together with its subsidiaries, provides engineered solutions and advanced materials for various industries worldwide. It operates through two segments, Advanced Materials & Structures and Engineered Papers. The Advanced Materials & Structures segment manufactures and sells resin-based rolled goods, such as nets, films and meltblown materials, bonding products, and adhesive components, as well as offers other coating solutions and converting services for healthcare, construction, industrial, transportation and filtration end-markets. The Engineered Papers segment provides low ignition propensity cigarette papers that are designed to self-extinguish when not actively being smoked; reconstituted tobacco leaf, and wrapper and binder products use in machine-made cigars; alkaline battery separator papers; and commodity paper grades for printing and writing, flooring laminates, and food service packaging. It also offers Botani, a hemp and botanical solution, which includes hemp wraps, fillers, and rolling/pre-roll papers for the natural fibers industry. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.

UPM-Kymmene Oyj operates in the forest-based bio industry. It operates through UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and Other operations segments. The company provides eucalyptus, birch, and softwood pulp grades for tissue, specialty and graphic papers, boards, and packaging; sawn timber for construction, packaging, distribution, joinery, and furniture industries; and wood-based renewable diesel and renewable naphtha for fuel distributors, transportation, and oil and petrochemicals industries. It is also involved in the generation of electricity through hydro, nuclear, and condensing power plants. In addition, the company offers self-adhesive papers and film label stocks for product and information labelling to label printers and brand owners in food, beverage, personal care, pharmaceutical, and retail segments; label papers and release liners, fine papers, and flexible packaging, as well as label and packaging papers production lines for retailers, printers, publishers, distributors, and paper converters; and graphic papers for advertising, magazines, newspapers, and home and office to publishers, cataloguers, retailers, printers, and merchants. Further, it provides plywood and veneer products for construction, vehicle flooring, liquefied natural gas shipbuilding, and other manufacturing industries; wood and wood-based biomass, and forestry services for woodland and forest owners; outdoor products for construction, and granulates for injection molding and extrusion; wood-based lignin products for industrial use and cell culture hydrogel products for biomedical applications; and biomedical products. The company primarily operates in Europe, North America, and Asia. UPM-Kymmene Oyj was founded in 1995 and is headquartered in Helsinki, Finland.

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