Analyzing Schweitzer-Mauduit International (SWM) & Verso (VRS)

Schweitzer-Mauduit International (NYSE: SWM) and Verso (NYSE:VRS) are both small-cap consumer staples companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Analyst Recommendations

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This is a summary of current recommendations and price targets for Schweitzer-Mauduit International and Verso, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Schweitzer-Mauduit International 0 0 1 0 3.00
Verso 0 0 2 0 3.00

Schweitzer-Mauduit International currently has a consensus price target of $47.00, indicating a potential upside of 19.99%. Verso has a consensus price target of $27.00, indicating a potential upside of 65.14%. Given Verso’s higher probable upside, analysts plainly believe Verso is more favorable than Schweitzer-Mauduit International.

Insider & Institutional Ownership

86.8% of Schweitzer-Mauduit International shares are owned by institutional investors. Comparatively, 82.2% of Verso shares are owned by institutional investors. 1.8% of Schweitzer-Mauduit International shares are owned by company insiders. Comparatively, 4.2% of Verso shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Schweitzer-Mauduit International has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Verso has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Valuation and Earnings

This table compares Schweitzer-Mauduit International and Verso’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Schweitzer-Mauduit International $982.00 million 1.23 $34.50 million $3.18 12.32
Verso $2.46 billion 0.23 -$30.00 million ($0.75) -21.80

Schweitzer-Mauduit International has higher earnings, but lower revenue than Verso. Verso is trading at a lower price-to-earnings ratio than Schweitzer-Mauduit International, indicating that it is currently the more affordable of the two stocks.

Dividends

Schweitzer-Mauduit International pays an annual dividend of $1.72 per share and has a dividend yield of 4.4%. Verso does not pay a dividend. Schweitzer-Mauduit International pays out 54.1% of its earnings in the form of a dividend. Schweitzer-Mauduit International has raised its dividend for 6 consecutive years.

Profitability

This table compares Schweitzer-Mauduit International and Verso’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Schweitzer-Mauduit International 3.50% 17.91% 6.42%
Verso -1.22% -4.83% -1.61%

Summary

Schweitzer-Mauduit International beats Verso on 10 of the 16 factors compared between the two stocks.

Schweitzer-Mauduit International Company Profile

Schweitzer-Mauduit International, Inc., together with its subsidiaries, provides engineered solutions and advanced materials for various industries worldwide. The company operates through two segments, Engineered Papers and Advanced Materials & Structures. The Engineered Papers segment produces and sells cigarette papers, reconstituted tobacco leaf, and wrapper and binder products to cigarette and cigar manufacturers; and other non-tobacco paper products. It also offers low ignition propensity cigarette paper; and lightweight papers for printing and writing, flooring laminates, and food service packaging. The Advanced Materials & Structures segment manufactures resin-based nets, films, and other non-wovens for filtration, infrastructure and construction, transportation, medical, and industrial applications. Schweitzer-Mauduit International, Inc. was founded in 1995 and is headquartered in Alpharetta, Georgia.

Verso Company Profile

Verso Corporation is a producer of coated papers, which are used in magazines, catalogs, advertising brochures and annual reports, among other media and marketing publications. The Company operates through two segments: paper and pulp. The Paper segment includes paper products, which are used in media and marketing applications, including catalogs, magazines, and commercial printing applications, such as advertising brochures, annual reports and direct-mail advertising. The Pulp segment includes pulp products, which are used to manufacture printing, writing, and specialty paper grades and tissue products. The Company produces a range of products, ranging from coated freesheet and coated groundwood, to inkjet and digital paper, supercalendered papers and uncoated freesheet. It also produces and sells market kraft pulp, which is used to manufacture printing and writing paper grades and tissue products. The Company also produces and sells Northern Bleached Hardwood Kraft (NBHK) pulp.

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