Contrasting Rayonier Advanced Materials (RYAM) & Its Competitors
Rayonier Advanced Materials (NYSE: RYAM) is one of 52 public companies in the “Specialty Chemicals” industry, but how does it contrast to its rivals? We will compare Rayonier Advanced Materials to related businesses based on the strength of its valuation, analyst recommendations, earnings, profitability, dividends, risk and institutional ownership.
Institutional & Insider Ownership
93.5% of Rayonier Advanced Materials shares are owned by institutional investors. Comparatively, 69.9% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 2.1% of Rayonier Advanced Materials shares are owned by company insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Rayonier Advanced Materials and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rayonier Advanced Materials||5.71%||24.17%||3.63%|
|Rayonier Advanced Materials Competitors||-2.47%||8.99%||4.06%|
This is a summary of current ratings and recommmendations for Rayonier Advanced Materials and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rayonier Advanced Materials||0||0||5||0||3.00|
|Rayonier Advanced Materials Competitors||161||1009||1264||24||2.47|
Rayonier Advanced Materials currently has a consensus target price of $18.80, indicating a potential upside of 34.29%. As a group, “Specialty Chemicals” companies have a potential downside of 2.14%. Given Rayonier Advanced Materials’ stronger consensus rating and higher possible upside, research analysts clearly believe Rayonier Advanced Materials is more favorable than its rivals.
Earnings and Valuation
This table compares Rayonier Advanced Materials and its rivals gross revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Rayonier Advanced Materials||$840.05 million||$202.73 million||17.50|
|Rayonier Advanced Materials Competitors||$1.96 billion||$301.94 million||16.27|
Rayonier Advanced Materials’ rivals have higher revenue and earnings than Rayonier Advanced Materials. Rayonier Advanced Materials is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Volatility and Risk
Rayonier Advanced Materials has a beta of 4.27, suggesting that its stock price is 327% more volatile than the S&P 500. Comparatively, Rayonier Advanced Materials’ rivals have a beta of 1.59, suggesting that their average stock price is 59% more volatile than the S&P 500.
Rayonier Advanced Materials pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. Rayonier Advanced Materials pays out 35.0% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.4% and pay out 27.3% of their earnings in the form of a dividend.
Rayonier Advanced Materials beats its rivals on 9 of the 15 factors compared.
Rayonier Advanced Materials Company Profile
Rayonier Advanced Materials Inc. is engaged in the production of cellulose specialties. The Company’s product lines include cellulose specialties and commodity products. Its products are used in manufacturing processes. The Company’s products are sold throughout the world to companies for use in various industrial applications, and to produce a range of products, including cigarette filters, foods, pharmaceuticals, textiles and electronics. The Company focuses on producing various forms of cellulose specialties products, such as cellulose acetate and cellulose ethers. The Company’s production facilities are located in Jesup, Georgia and Fernandina Beach, Florida. The Jesup plant can produce cellulose specialties or commodity products using both hardwood and softwood in a pre-hydrolyzed kraft or high potential of hydrogen (pH) cooking process. The Fernandina Beach plant can produce cellulose specialties or commodity products using softwood in a sulfite or low pH cooking process.
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