Financial Analysis: Neenah Paper (NP) & Glatfelter (GLT)

Neenah Paper (NYSE: NP) and Glatfelter (NYSE:GLT) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Institutional & Insider Ownership

92.2% of Neenah Paper shares are owned by institutional investors. Comparatively, 90.8% of Glatfelter shares are owned by institutional investors. 2.0% of Neenah Paper shares are owned by company insiders. Comparatively, 2.3% of Glatfelter shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

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 3.1%. Neenah Paper pays out 33.7% of its earnings in the form of a dividend. Glatfelter pays out 260.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Analyst Ratings

This is a breakdown of recent recommendations for Neenah Paper and Glatfelter, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Neenah Paper 0 1 0 0 2.00
Glatfelter 0 1 1 0 2.50

Neenah Paper presently has a consensus price target of $78.00, indicating a potential upside of 1.23%. Glatfelter has a consensus price target of $24.50, indicating a potential upside of 44.12%. Given Glatfelter’s stronger consensus rating and higher possible upside, analysts plainly believe Glatfelter is more favorable than Neenah Paper.

Valuation & Earnings

This table compares Neenah Paper and Glatfelter’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Neenah Paper $944.20 million 1.37 $142.10 million $4.39 17.55
Glatfelter $1.58 billion 0.47 $82.77 million $0.20 85.00

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.

Risk and Volatility

Neenah Paper has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Glatfelter has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Profitability

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
Neenah Paper 7.99% 21.03% 9.50%
Glatfelter 0.59% 8.32% 3.57%

Summary

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.

What are top analysts saying about Neenah Paper Inc.? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Neenah Paper Inc. and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit