Neenah Paper (NP) & Glatfelter (NYSE:GLT) Critical Review
Neenah Paper (NYSE: NP) and Glatfelter (NYSE:GLT) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitabiliy, dividends, analyst recommendations, risk and valuation.
Neenah Paper pays an annual dividend of $1.48 per share and has a dividend yield of 1.9%. Glatfelter pays an annual dividend of $0.52 per share and has a dividend yield of 2.6%. Neenah Paper pays out 35.9% of its earnings in the form of a dividend. Glatfelter pays out 140.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Neenah Paper has raised its dividend for 4 consecutive years and Glatfelter has raised its dividend for 6 consecutive years. Glatfelter is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Neenah Paper has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Glatfelter has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.
Valuation and Earnings
This table compares Neenah Paper and Glatfelter’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Neenah Paper||$941.50 million||1.41||$148.10 million||$4.12||19.24|
|Glatfelter||$1.60 billion||0.54||$88.36 million||$0.37||53.97|
Neenah Paper has higher revenue, but lower earnings than Glatfelter. Neenah Paper is trading at a lower price-to-earnings ratio than Glatfelter, indicating that it is currently the more affordable of the two stocks.
This table compares Neenah Paper and Glatfelter’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and target prices for Neenah Paper and Glatfelter, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Neenah Paper currently has a consensus price target of $78.00, indicating a potential downside of 1.58%. Glatfelter has a consensus price target of $24.50, indicating a potential upside of 22.68%. Given Glatfelter’s stronger consensus rating and higher possible upside, analysts clearly believe Glatfelter is more favorable than Neenah Paper.
Institutional & Insider Ownership
88.5% of Neenah Paper shares are owned by institutional investors. Comparatively, 90.1% of Glatfelter shares are owned by institutional investors. 2.0% of Neenah Paper shares are owned by insiders. Comparatively, 2.3% of Glatfelter shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Glatfelter beats Neenah Paper on 9 of the 17 factors compared between the two stocks.
Neenah Paper Company Profile
Neenah Paper, Inc. is a producer of technical products and premium fine papers and packaging. The Company has two primary businesses: technical products business, and fine paper and packaging business. Its segments consist of Technical Products, Fine Paper and Packaging, and Other. The technical products business is an international producer of transportation, water and other filter media and durable, saturated and coated substrates. The fine paper and packaging business is a supplier of printing and other specialty papers in North America. Its technical products manufacturing facilities are located near Munich, Germany, in Bolton, England, in Munising, Michigan and in Pittsfield, Massachusetts. In addition, certain technical products are manufactured along with fine paper and packaging products in shared facilities located in upstate New York and Quakertown, Pennsylvania. JET-PRO SofStretch, KIMDURA, GESSNER, PREVAIL, NEENAH and GESSNER are brands of its technical products business.
Glatfelter Company Profile
P. H. Glatfelter Company is a manufacturer of specialty papers and fiber-based engineered materials. The Company operates through three business units: Composite Fibers, Advanced Airlaid Materials and Specialty Papers. Its Composite Fibers business unit is engaged in the sale of single-serve tea and coffee filtration papers, non-woven wallcovering materials, metallized papers, composite laminates papers, and various technically special papers, including substrates for electrical applications. Its Advanced Airlaid Materials is engaged in the sale of airlaid non-woven fabric-like materials used in feminine hygiene and adult incontinence products, wipes and other airlaid applications. Its Specialty Papers business unit is engaged in the sale of papers for carbonless and other forms, envelopes, book publishing and engineered products, such as papers for high-speed ink jet printing, office specialty products, greeting cards, postal and other specialty applications.
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