Schweitzer-Mauduit International (NYSE: SWM) and Neenah (NYSE:NP) are both small-cap consumer staples companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.
This table compares Schweitzer-Mauduit International and Neenah’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Earnings & Valuation
This table compares Schweitzer-Mauduit International and Neenah’s revenue, earnings per share and valuation.
||Earnings Per Share
Neenah has lower revenue, but higher earnings than Schweitzer-Mauduit International. Schweitzer-Mauduit International is trading at a lower price-to-earnings ratio than Neenah, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations and price targets for Schweitzer-Mauduit International and Neenah, as provided by MarketBeat.
||Strong Buy Ratings
Schweitzer-Mauduit International currently has a consensus target price of $47.00, suggesting a potential upside of 8.80%. Given Schweitzer-Mauduit International’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Schweitzer-Mauduit International is more favorable than Neenah.
Insider and Institutional Ownership
87.7% of Schweitzer-Mauduit International shares are held by institutional investors. Comparatively, 90.5% of Neenah shares are held by institutional investors. 1.8% of Schweitzer-Mauduit International shares are held by insiders. Comparatively, 2.0% of Neenah shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Schweitzer-Mauduit International pays an annual dividend of $1.72 per share and has a dividend yield of 4.0%. Neenah pays an annual dividend of $1.64 per share and has a dividend yield of 1.9%. Schweitzer-Mauduit International pays out 54.1% of its earnings in the form of a dividend. Neenah pays out 38.0% 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. Schweitzer-Mauduit International has increased its dividend for 6 consecutive years and Neenah has increased its dividend for 7 consecutive years.
Risk and Volatility
Schweitzer-Mauduit International has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Neenah has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
Neenah beats Schweitzer-Mauduit International on 11 of the 17 factors compared between the two stocks.
About Schweitzer-Mauduit International
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.
Neenah, Inc. produces and sells technical products, and fine paper and packaging products worldwide. The company's Technical Products segment offers filtration media for transportation, water, and other uses; saturated and unsaturated crepe, and flat paper tapes to manufacturers; and coated lightweight abrasive paper for automotive, construction, metal, and woodworking industries. It also provides digital image transfer media; label and tag products for variable and digital printing; latex saturated and coated papers; premask, medical packaging, publishing, and security papers; and clean room and durable printing papers, release papers, and furniture backers. Its Fine Paper and Packaging segment manufactures and sells premium writing, text, cover, and specialty papers and envelopes used in commercial printing services, corporate identity packages, and advertising collaterals. This segment also provides premium packaging products for retail, cosmetics, spirits, and electronics end-use markets; bright papers for direct mail, advertising insert, scrapbook, and marketing collateral applications; and business papers for professionals and small businesses, as well as translucent and art papers, papers for optical scanning, and other specialized applications. The company markets its products under the JET-PRO SofStretch, KIMDURA, PREVAIL, NEENAH, GESSNER, CLASSIC, CLASSIC CREST, ESSE, ENVIRONMENT, CAPITOL BOND, ROYAL SUNDANCE, SOUTHWORTH, TOUCHE, CRANE'S CREST, CRANE'S BOND, CRANE'S LETTRA, SO…SILK, PLIKE, STARDREAM, CONVERD, ESTATE LABEL, Neenah, PELLAQ, KIVAR, SKIVERTEX, ILLUSIO, SENZO, ASTROBRIGHTS, and CREATIVE COLLECTION names. It sells its products through authorized paper distributors, converters, retailers, specialty businesses, and direct sales. The company was formerly known as Neenah Paper, Inc. and changed its name to Neenah, Inc. in January 2018. Neenah, Inc. was founded in 2004 and is headquartered in Alpharetta, Georgia.
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