Paper, Lumber & Forest Products
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MERC vs SON
Revenue, margins, valuation, and 5-year total return — side by side.
Packaging & Containers
MERC vs SON — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Paper, Lumber & Forest Products | Packaging & Containers |
| Market Cap | $74M | $5.10B |
| Revenue (TTM) | $1.85B | $7.49B |
| Net Income (TTM) | $-528M | $1.04B |
| Gross Margin | -3.5% | 20.9% |
| Operating Margin | -12.0% | 8.7% |
| Forward P/E | — | 8.8x |
| Total Debt | $1.61B | $4.85B |
| Cash & Equiv. | $187M | $378M |
MERC vs SON — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Mercer Internationa… (MERC) | 100 | 13.8 | -86.2% |
| Sonoco Products Com… (SON) | 100 | 99.8 | -0.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: MERC vs SON
Each card shows where this stock fits in a portfolio — not just who wins on paper.
MERC is the clearest fit if your priority is defensive.
- Beta 2.06, yield 13.5%, current ratio 3.05x
- 13.5% yield, vs SON's 4.0%
SON carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 30 yrs, beta 0.53, yield 4.0%
- Rev growth 41.7%, EPS growth 141.2%, 3Y rev CAGR 8.7%
- 48.6% 10Y total return vs MERC's -48.2%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 41.7% revenue growth vs MERC's -8.6% | |
| Quality / Margins | 13.8% margin vs MERC's -28.5% | |
| Stability / Safety | Beta 0.53 vs MERC's 2.06, lower leverage | |
| Dividends | 13.5% yield, vs SON's 4.0% | |
| Momentum (1Y) | +21.9% vs MERC's -64.8% | |
| Efficiency (ROA) | 9.0% ROA vs MERC's -24.3%, ROIC 6.2% vs -8.5% |
MERC vs SON — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
MERC vs SON — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
SON leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
SON is the larger business by revenue, generating $7.5B annually — 4.0x MERC's $1.9B. SON is the more profitable business, keeping 13.8% of every revenue dollar as net income compared to MERC's -28.5%.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $1.9B | $7.5B |
| EBITDAEarnings before interest/tax | -$102M | $1.2B |
| Net IncomeAfter-tax profit | -$528M | $1.0B |
| Free Cash FlowCash after capex | -$156M | $266M |
| Gross MarginGross profit ÷ Revenue | -3.5% | +20.9% |
| Operating MarginEBIT ÷ Revenue | -12.0% | +8.7% |
| Net MarginNet income ÷ Revenue | -28.5% | +13.8% |
| FCF MarginFCF ÷ Revenue | -8.4% | +3.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | -3.5% | -1.9% |
| EPS Growth (YoY)Latest quarter vs prior year | -136.4% | +23.6% |
Valuation Metrics
MERC leads this category, winning 3 of 3 comparable metrics.
Valuation Metrics
| Metric | ||
|---|---|---|
| Market CapShares × price | $74M | $5.1B |
| Enterprise ValueMkt cap + debt − cash | $1.5B | $9.6B |
| Trailing P/EPrice ÷ TTM EPS | -0.15x | 12.99x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 8.84x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.92x |
| EV / EBITDAEnterprise value multiple | — | 7.77x |
| Price / SalesMarket cap ÷ Revenue | 0.04x | 0.68x |
| Price / BookPrice ÷ Book value/share | 1.09x | 1.42x |
| Price / FCFMarket cap ÷ FCF | — | 12.99x |
Profitability & Efficiency
SON leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
SON delivers a 30.0% return on equity — every $100 of shareholder capital generates $30 in annual profit, vs $-2 for MERC. SON carries lower financial leverage with a 1.34x debt-to-equity ratio, signaling a more conservative balance sheet compared to MERC's 23.64x. On the Piotroski fundamental quality scale (0–9), SON scores 7/9 vs MERC's 3/9, reflecting strong financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | -2.4% | +30.0% |
| ROA (TTM)Return on assets | -24.3% | +9.0% |
| ROICReturn on invested capital | -8.5% | +6.2% |
| ROCEReturn on capital employed | -9.7% | +8.3% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 7 |
| Debt / EquityFinancial leverage | 23.64x | 1.34x |
| Net DebtTotal debt minus cash | $1.4B | $4.5B |
| Cash & Equiv.Liquid assets | $187M | $378M |
| Total DebtShort + long-term debt | $1.6B | $4.9B |
| Interest CoverageEBIT ÷ Interest expense | -2.78x | 4.60x |
Total Returns (Dividends Reinvested)
SON leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in SON five years ago would be worth $9,026 today (with dividends reinvested), compared to $1,480 for MERC. Over the past 12 months, SON leads with a +21.9% total return vs MERC's -64.8%. The 3-year compound annual growth rate (CAGR) favors SON at -1.1% vs MERC's -42.0% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -43.4% | +17.7% |
| 1-Year ReturnPast 12 months | -64.8% | +21.9% |
| 3-Year ReturnCumulative with dividends | -80.4% | -3.2% |
| 5-Year ReturnCumulative with dividends | -85.2% | -9.7% |
| 10-Year ReturnCumulative with dividends | -48.2% | +48.6% |
| CAGR (3Y)Annualised 3-year return | -42.0% | -1.1% |
Risk & Volatility
SON leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
SON is the less volatile stock with a 0.53 beta — it tends to amplify market swings less than MERC's 2.06 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SON currently trades 88.5% from its 52-week high vs MERC's 24.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.06x | 0.53x |
| 52-Week HighHighest price in past year | $4.47 | $58.43 |
| 52-Week LowLowest price in past year | $1.00 | $38.65 |
| % of 52W HighCurrent price vs 52-week peak | +24.8% | +88.5% |
| RSI (14)Momentum oscillator 0–100 | 42.3 | 50.8 |
| Avg Volume (50D)Average daily shares traded | 440K | 1.1M |
Analyst Outlook
Evenly matched — MERC and SON each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates MERC as "Hold" and SON as "Buy". Consensus price targets imply 102.7% upside for MERC (target: $2) vs 14.1% for SON (target: $59). For income investors, MERC offers the higher dividend yield at 13.51% vs SON's 4.04%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $2.25 | $59.00 |
| # AnalystsCovering analysts | 9 | 21 |
| Dividend YieldAnnual dividend ÷ price | +13.5% | +4.0% |
| Dividend StreakConsecutive years of raises | 0 | 30 |
| Dividend / ShareAnnual DPS | $0.15 | $2.09 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.2% |
SON leads in 4 of 6 categories (Income & Cash Flow, Profitability & Efficiency). MERC leads in 1 (Valuation Metrics). 1 tied.
MERC vs SON: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is MERC or SON a better buy right now?
For growth investors, Sonoco Products Company (SON) is the stronger pick with 41.
7% revenue growth year-over-year, versus -8. 6% for Mercer International Inc. (MERC). Sonoco Products Company (SON) offers the better valuation at 13. 0x trailing P/E (8. 8x forward), making it the more compelling value choice. Analysts rate Sonoco Products Company (SON) a "Buy" — based on 21 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which is the better long-term investment — MERC or SON?
Over the past 5 years, Sonoco Products Company (SON) delivered a total return of -9.
7%, compared to -85. 2% for Mercer International Inc. (MERC). Over 10 years, the gap is even starker: SON returned +48. 6% versus MERC's -48. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
03Which is safer — MERC or SON?
By beta (market sensitivity over 5 years), Sonoco Products Company (SON) is the lower-risk stock at 0.
53β versus Mercer International Inc. 's 2. 06β — meaning MERC is approximately 289% more volatile than SON relative to the S&P 500. On balance sheet safety, Sonoco Products Company (SON) carries a lower debt/equity ratio of 134% versus 24% for Mercer International Inc. — giving it more financial flexibility in a downturn.
04Which is growing faster — MERC or SON?
By revenue growth (latest reported year), Sonoco Products Company (SON) is pulling ahead at 41.
7% versus -8. 6% for Mercer International Inc. (MERC). On earnings-per-share growth, the picture is similar: Sonoco Products Company grew EPS 141. 2% year-over-year, compared to -485. 8% for Mercer International Inc.. Over a 3-year CAGR, SON leads at 8. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
05Which has better profit margins — MERC or SON?
Sonoco Products Company (SON) is the more profitable company, earning 5.
3% net margin versus -26. 7% for Mercer International Inc. — meaning it keeps 5. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SON leads at 9. 5% versus -9. 7% for MERC. At the gross margin level — before operating expenses — SON leads at 20. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is MERC or SON more undervalued right now?
Analyst consensus price targets imply the most upside for MERC: 102.
7% to $2. 25.
07Which pays a better dividend — MERC or SON?
All stocks in this comparison pay dividends.
Mercer International Inc. (MERC) offers the highest yield at 13. 5%, versus 4. 0% for Sonoco Products Company (SON).
08Is MERC or SON better for a retirement portfolio?
For long-horizon retirement investors, Sonoco Products Company (SON) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
53), 4. 0% yield). Mercer International Inc. (MERC) carries a higher beta of 2. 06 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SON: +48. 6%, MERC: -48. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between MERC and SON?
These companies operate in different sectors (MERC (Basic Materials) and SON (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
In terms of investment character: MERC is a small-cap income-oriented stock; SON is a small-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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