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 $24.1B against $18.4B — 1.3× the size. International Paper Company has negative trailing earnings, so its P/E is not meaningful; Smurfit Westrock PLC trades at 48.9×. 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 (5.32% vs 2.64%). Across the 22 metrics below, Smurfit Westrock PLC leads on 15 and International Paper Company on 7.

Valuation

Metric IP SW Packaging & Containers median
P/E n/m 48.85 15.79
P/S 0.87 0.78 0.88
P/B 1.45 1.35 1.60
Price to free cash flow 32.43 23.25 13.41
EV/EBITDA 9.42 8.97 9.04
EV/Sales 1.18 1.21 1.31
Earnings yield (18.62%) 2.05% 5.04%
Free cash flow yield 3.08% 4.30% 6.34%

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% —
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 5.32% 2.64% 2.79%
Payout ratio 0.46 0.28 0.28

Size

Metric IP SW Packaging & Containers median
Market cap 18.44b 24.05b 3.71b

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