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 $23.3B against $18.1B — 1.3× the size. International Paper Company has negative trailing earnings, so its P/E is not meaningful; Smurfit Westrock PLC trades at 49.6×. International Paper Company grew revenue faster over the last twelve months: 12.2% against 1.11%. Smurfit Westrock PLC has the higher net margin (1.50% vs −14.3%) and the higher return on invested capital (2.87% vs 2.15%). Both pay a dividend; International Paper Company yields more (5.39% vs 4.03%). Across the 22 metrics below, Smurfit Westrock PLC leads on 14 and International Paper Company on 8.

Valuation

Metric IP SW Packaging & Containers median
P/E n/m 49.65 20.50
P/S 0.75 0.75 0.84
P/B 1.38 1.30 1.81
Price to free cash flow 63.00 26.43 13.39
EV/EBITDA 8.28 8.73 9.53
EV/Sales 1.04 1.17 1.39
Earnings yield (19.11%) 2.01% 2.89%
Free cash flow yield 1.59% 3.78% 5.42%

Profitability

Metric IP SW Packaging & Containers median
Gross margin 29.80% 17.43% 20.09%
Operating margin 2.85% 4.57% 6.42%
Net margin (14.32%) 1.50% 3.43%
Free cash flow margin 1.19% 2.82% 4.78%
Return on equity (22.73%) 2.59% 2.28%
Return on assets (9.09%) 1.04% 1.04%
Return on invested capital 2.15% 2.87% 4.57%

Growth

Metric IP SW Packaging & Containers median
Revenue growth (TTM) 12.19% 1.11% 4.05%
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 0.59 0.78 0.79
Current ratio 1.01 1.48 1.29
Net debt to EBITDA 2.50 3.02 2.59

Dividend

Metric IP SW Packaging & Containers median
Dividend yield 5.39% 4.03% 3.38%
Payout ratio — 2.02 0.60

Size

Metric IP SW Packaging & Containers median
Market cap 18.13b 23.27b 3.71b

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