International Paper Company (IP) vs Smurfit Westrock PLC (SW)

International Paper Company and Smurfit Westrock PLC are both Packaging & Containers companies. Smurfit Westrock PLC is the larger, with a market value of $21.6B against $18.1B — 1.2× the size. International Paper Company has negative trailing earnings, so its P/E is not meaningful; Smurfit Westrock PLC trades at 43.3×. International Paper Company grew revenue faster over the last twelve months: 35.3% against 1.69%. Smurfit Westrock PLC has the higher net margin (1.59% vs −14.2%) and the higher return on invested capital (2.93% vs 0.62%). Both pay a dividend; International Paper Company yields more (5.45% vs 4.34%). Across the 22 metrics below, Smurfit Westrock PLC leads on 16 and International Paper Company on 6.

Valuation

Metric IP SW Packaging & Containers median
P/E n/m 43.33 17.11
P/S 0.84 0.69 0.87
P/B 1.41 1.19 1.66
Price to free cash flow 31.42 20.62 13.16
EV/EBITDA 9.21 8.31 9.21
EV/Sales 1.15 1.12 1.35
Earnings yield (19.22%) 2.31% 4.96%
Free cash flow yield 3.18% 4.85% 6.15%

Profitability

Metric IP SW Packaging & Containers median
Gross margin 29.77% 17.93% 20.03%
Operating margin 0.90% 4.71% 8.36%
Net margin (14.20%) 1.59% 4.53%
Free cash flow margin 2.68% 3.34% 5.14%
Return on equity (20.79%) 2.73% 11.28%
Return on assets (8.72%) 1.09% 4.29%
Return on invested capital 0.62% 2.93% 6.43%

Growth

Metric IP SW Packaging & Containers median
Revenue growth (TTM) 35.30% 1.69% 9.10%
EPS growth (last fiscal year) (542.68%) 62.20% 0.69%
Revenue growth, 5-year CAGR 6.12% 7.96% 5.66%
Net income growth, 5-year CAGR 0.00% (5.84%) 0.00%

Health

Metric IP SW Packaging & Containers median
Debt to equity 0.57 0.78 0.78
Current ratio 1.10 1.45 1.29
Net debt to EBITDA 2.50 3.02 2.65

Dividend

Metric IP SW Packaging & Containers median
Dividend yield 5.45% 4.34% 3.14%
Payout ratio — 1.90 0.56

Size

Metric IP SW Packaging & Containers median
Market cap 18.06b 21.56b 3.71b

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