Sappi (OTCMKTS:SPPJY – Get Free Report) and Magnera (NYSE:MAGN – Get Free Report) are both small-cap materials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Valuation & Earnings
This table compares Sappi and Magnera”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sappi | $5.42 billion | 0.09 | -$177.00 million | ($1.36) | -0.62 |
| Magnera | $3.20 billion | 0.14 | -$159.00 million | ($2.01) | -6.02 |
Analyst Recommendations
This is a summary of current ratings and price targets for Sappi and Magnera, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sappi | 0 | 1 | 0 | 0 | 2.00 |
| Magnera | 1 | 2 | 0 | 0 | 1.67 |
Magnera has a consensus price target of $16.00, indicating a potential upside of 32.12%. Given Magnera’s higher possible upside, analysts clearly believe Magnera is more favorable than Sappi.
Insider and Institutional Ownership
76.9% of Magnera shares are owned by institutional investors. 0.7% of Sappi shares are owned by insiders. Comparatively, 1.0% of Magnera shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Sappi and Magnera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sappi | -15.44% | -6.41% | -2.30% |
| Magnera | -3.41% | -10.77% | -2.87% |
Risk & Volatility
Sappi has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Magnera has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500.
Summary
Magnera beats Sappi on 7 of the 13 factors compared between the two stocks.
About Sappi
Sappi Limited, together with its subsidiaries, engages in the provision of materials made from woodfiber-based renewable resources in Europe, North America, and South Africa. The company manufacture and sells dissolving pulp, and wood and paper pulp; graphic papers, coated and uncoated papers, and casting and release papers; and packaging and specialty papers, including packaging and specialty papers, including flexible packaging papers, label papers, functional paper packaging products, containerboards, paperboards, silicone base papers, and dye sublimation papers. It also provides biomaterials, such as valida, lignin, furfural, and sweeteners, as well as forestry products; and engages in the treasury and insurance business. The company was founded in 1936 and is headquartered in Johannesburg, South Africa.
About Magnera
Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions propel our customers’ goals forward and solve end-users’ problems, every day.
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