Mercer International Inc. (MERC) vs Suzano S.A. Sponsored ADR (SUZ)

Mercer International Inc. and Suzano S.A. Sponsored ADR are both Paper & Paper Products companies. Suzano S.A. Sponsored ADR is the larger, with a market value of $10.8B against $22.7M — 477.7× the size. Mercer International Inc. has negative trailing earnings, so its P/E is not meaningful; Suzano S.A. Sponsored ADR trades at 4.4×. Suzano S.A. Sponsored ADR grew revenue faster over the last twelve months: 0.42% against −4.81%. Suzano S.A. Sponsored ADR has the higher net margin (17.8% vs −27.9%) and the higher return on invested capital (5.31% vs −18.8%). Both pay a dividend; Mercer International Inc. yields more (3.75% vs 1.44%). Across the 18 metrics below, Suzano S.A. Sponsored ADR leads on 13 and Mercer International Inc. on 5.

Valuation

Metric MERC SUZ Paper & Paper Products median
P/E n/m 4.41 —
P/S 0.01 1.19 0.22
P/B n/m 1.09 —
Price to free cash flow n/m 11.08 —
EV/EBITDA n/m 5.55 —
EV/Sales 0.85 2.58 0.65
Earnings yield (2,415.63%) 22.66% (14.95%)
Free cash flow yield (692.16%) 9.02% 9.02%

Profitability

Metric MERC SUZ Paper & Paper Products median
Gross margin (5.81%) 28.63% 5.69%
Operating margin (23.58%) 21.07% (5.41%)
Net margin (27.86%) 17.82% (3.24%)
Free cash flow margin (7.96%) 10.72% 3.72%
Return on equity (296.95%) 18.39% (6.05%)
Return on assets (24.36%) 5.19% (3.07%)
Return on invested capital (18.83%) 5.31% (4.06%)

Growth

Metric MERC SUZ Paper & Paper Products median
Revenue growth (TTM) (4.81%) 0.42% (1.93%)
EPS growth (last fiscal year) (485.83%) 286.54% —
Revenue growth, 5-year CAGR 5.59% 8.72% 5.59%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric MERC SUZ Paper & Paper Products median
Debt to equity (16.69) 1.86 0.45
Current ratio 1.30 3.38 1.92
Net debt to EBITDA (5.97) 3.46 1.38

Dividend

Metric MERC SUZ Paper & Paper Products median
Dividend yield 3.75% 1.44% —
Payout ratio 0.06 0.10 0.06

Size

Metric MERC SUZ Paper & Paper Products median
Market cap 22.67m 10.83b 326.91m

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