Financial Survey: Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) versus Klabin (OTCMKTS:KLBAY)

Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) and Klabin (OTCMKTS:KLBAY) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

This table compares Kimberly-Clark de Mexico SAB de CV and Klabin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimberly-Clark de Mexico SAB de CV	13.36%	135.47%	14.19%
Klabin	9.90%	18.24%	3.49%

Analyst Ratings

This is a breakdown of recent ratings for Kimberly-Clark de Mexico SAB de CV and Klabin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimberly-Clark de Mexico SAB de CV	0	1	0	0	2.00
Klabin	0	2	0	0	2.00

Dividends

Kimberly-Clark de Mexico SAB de CV pays an annual dividend of $0.49 per share and has a dividend yield of 4.9%. Klabin pays an annual dividend of $0.37 per share and has a dividend yield of 5.3%. Kimberly-Clark de Mexico SAB de CV pays out 79.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Klabin pays out 61.7% of its earnings in the form of a dividend. Klabin is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Kimberly-Clark de Mexico SAB de CV and Klabin”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimberly-Clark de Mexico SAB de CV	$3.01 billion	2.03	$429.88 million	$0.62	16.03
Klabin	$3.64 billion	5.95	$339.47 million	$0.60	11.68

Kimberly-Clark de Mexico SAB de CV has higher earnings, but lower revenue than Klabin. Klabin is trading at a lower price-to-earnings ratio than Kimberly-Clark de Mexico SAB de CV, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Kimberly-Clark de Mexico SAB de CV has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Klabin has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Summary

Kimberly-Clark de Mexico SAB de CV beats Klabin on 6 of the 11 factors compared between the two stocks.

About Kimberly-Clark de Mexico SAB de CV

Kimberly-Clark de México, S. A. B. de C. V., together with its subsidiaries, manufactures, distributes, and markets disposable products in Mexico. The company offers baby diapers, training pants, swim pants, wet wipes, shampoos, creams, bar soaps, and feeding products. It also provides toilet papers, napkins, facial tissues, paper towels, feminine pads, panty liners, tampons, intimate wipes, and menstrual cups. In addition, the company offers pets shampoos, sprays, repellents, and cleaners. Further, it provides liquid hand soap, foaming liquid soap, and liquid body wash; and underwear, protectors, feminine pads, pre-folded products for adults. Additionally, the company offers anti-bacterial gels; disinfectant sprays; face masks; dispensers; hand towels; and industrial cleaning cloths. The company offers its products primarily under the Huggies, KleenBebe, Kleenex, Evenflo, Pétalo, Suavel, Cottonelle, Depend, Kotex, Pull-Ups, GoodNites, Vogue, Delsey, Diapro, LYS, Fancy, Kimberly-Clark, and Escudo brands. The company exports its products. Kimberly-Clark de México, S. A. B. de C. V. was founded in 1925 and is based in Mexico City, Mexico.

About Klabin

Klabin S.A., together with its subsidiaries, produces and exports packaging paper and sustainable paper packaging solutions in Brazil and internationally. The company engages in the planting of pine and eucalyptus; and forestry management business. It also produces and sells hardwood (eucalyptus), softwood (pine), and fluffed pulp; and paperboard, sackraft, Kraftliner paper, and recycled paper. In addition, the company offers industrial bags, corrugated boxes, and other packaging products. Klabin S.A. was founded in 1899 and is headquartered in São Paulo, Brazil.