International Paper (IP) vs. Its Peers Head-To-Head Review

International Paper (NYSE:IP) is one of 70 public companies in the “Containers & Packaging” industry, but how does it contrast to its competitors? We will compare International Paper to similar companies based on the strength of its dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Earnings & Valuation

This table compares International Paper and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
International Paper	$24.20 billion	-$3.52 billion	-5.12
International Paper Competitors	$6.05 billion	$213.75 million	11.15

International Paper has higher revenue, but lower earnings than its competitors. International Paper is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 5.5%. International Paper pays out -28.4% of its earnings in the form of a dividend. As a group, “Containers & Packaging” companies pay a dividend yield of 5.0% and pay out -77.8% of their earnings in the form of a dividend.

Institutional & Insider Ownership

81.9% of International Paper shares are held by institutional investors. Comparatively, 54.3% of shares of all “Containers & Packaging” companies are held by institutional investors. 0.2% of International Paper shares are held by company insiders. Comparatively, 13.5% of shares of all “Containers & Packaging” companies are held 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.

Profitability

This table compares International Paper and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Paper	-14.20%	-1.09%	-0.44%
International Paper Competitors	-22.83%	5.56%	1.61%

Analyst Recommendations

This is a summary of current ratings and target prices for International Paper and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Paper	1	3	10	0	2.64
International Paper Competitors	398	2372	3442	86	2.51

International Paper currently has a consensus price target of $46.90, indicating a potential upside of 40.55%. As a group, “Containers & Packaging” companies have a potential upside of 41.20%. Given International Paper’s competitors higher possible upside, analysts plainly believe International Paper has less favorable growth aspects than its competitors.

Volatility and Risk

International Paper has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500. Comparatively, International Paper’s competitors have a beta of 0.76, indicating that their average share price is 24% less volatile than the S&P 500.

Summary

International Paper competitors beat International Paper on 8 of the 15 factors compared.

International Paper Company Profile

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.