Rayonier Advanced Materials (NYSE:RYAM) & Its Peers Head to Head Survey

Rayonier Advanced Materials (NYSE: RYAM) is one of 52 public companies in the “Specialty Chemicals” industry, but how does it weigh in compared to its peers? We will compare Rayonier Advanced Materials to related businesses based on the strength of its dividends, profitability, risk, earnings, institutional ownership, valuation and analyst recommendations.

Profitability

This table compares Rayonier Advanced Materials and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rayonier Advanced Materials 5.71% 24.17% 3.63%
Rayonier Advanced Materials Competitors -2.56% 9.10% 3.87%

Valuation & Earnings

This table compares Rayonier Advanced Materials and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Rayonier Advanced Materials $840.05 million $202.73 million 17.89
Rayonier Advanced Materials Competitors $1.96 billion $302.17 million 12.59

Rayonier Advanced Materials’ peers have higher revenue and earnings than Rayonier Advanced Materials. Rayonier Advanced Materials is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

93.1% of Rayonier Advanced Materials shares are held by institutional investors. Comparatively, 69.7% of shares of all “Specialty Chemicals” companies are held by institutional investors. 2.1% of Rayonier Advanced Materials shares are held by company insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Rayonier Advanced Materials has a beta of 4.27, indicating that its share price is 327% more volatile than the S&P 500. Comparatively, Rayonier Advanced Materials’ peers have a beta of 1.59, indicating that their average share price is 59% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Rayonier Advanced Materials and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rayonier Advanced Materials 0 0 5 0 3.00
Rayonier Advanced Materials Competitors 164 1022 1275 24 2.47

Rayonier Advanced Materials currently has a consensus price target of $18.80, suggesting a potential upside of 31.38%. As a group, “Specialty Chemicals” companies have a potential downside of 3.11%. Given Rayonier Advanced Materials’ stronger consensus rating and higher possible upside, equities analysts clearly believe Rayonier Advanced Materials is more favorable than its peers.

Dividends

Rayonier Advanced Materials pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. Rayonier Advanced Materials pays out 35.0% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.4% and pay out 27.1% of their earnings in the form of a dividend.

Summary

Rayonier Advanced Materials beats its peers on 9 of the 15 factors compared.

Rayonier Advanced Materials Company Profile

Rayonier Advanced Materials Inc. is engaged in the production of cellulose specialties. The Company’s product lines include cellulose specialties and commodity products. Its products are used in manufacturing processes. The Company’s products are sold throughout the world to companies for use in various industrial applications, and to produce a range of products, including cigarette filters, foods, pharmaceuticals, textiles and electronics. The Company focuses on producing various forms of cellulose specialties products, such as cellulose acetate and cellulose ethers. The Company’s production facilities are located in Jesup, Georgia and Fernandina Beach, Florida. The Jesup plant can produce cellulose specialties or commodity products using both hardwood and softwood in a pre-hydrolyzed kraft or high potential of hydrogen (pH) cooking process. The Fernandina Beach plant can produce cellulose specialties or commodity products using softwood in a sulfite or low pH cooking process.

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