Clearwater Paper (NYSE:CLW – Get Free Report) and Stora Enso Oyj (OTCMKTS:SEOAY – Get Free Report) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.
Profitability
This table compares Clearwater Paper and Stora Enso Oyj’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Clearwater Paper | 0.16% | -7.36% | -3.65% |
| Stora Enso Oyj | 6.20% | 2.31% | 1.29% |
Earnings and Valuation
This table compares Clearwater Paper and Stora Enso Oyj”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Clearwater Paper | $1.52 billion | 0.14 | -$18.60 million | $0.16 | 83.12 |
| Stora Enso Oyj | $10.55 billion | 0.80 | $786.32 million | $0.84 | 12.73 |
Stora Enso Oyj has higher revenue and earnings than Clearwater Paper. Stora Enso Oyj is trading at a lower price-to-earnings ratio than Clearwater Paper, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
90.0% of Clearwater Paper shares are held by institutional investors. Comparatively, 0.0% of Stora Enso Oyj shares are held by institutional investors. 2.4% of Clearwater Paper shares are held by insiders. Comparatively, 8.1% of Stora Enso Oyj shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Clearwater Paper and Stora Enso Oyj, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Clearwater Paper | 1 | 6 | 1 | 0 | 2.00 |
| Stora Enso Oyj | 2 | 1 | 1 | 0 | 1.75 |
Clearwater Paper currently has a consensus price target of $19.67, suggesting a potential upside of 47.87%. Given Clearwater Paper’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Clearwater Paper is more favorable than Stora Enso Oyj.
Volatility & Risk
Clearwater Paper has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500. Comparatively, Stora Enso Oyj has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
Summary
Stora Enso Oyj beats Clearwater Paper on 9 of the 13 factors compared between the two stocks.
About Clearwater Paper
Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through Pulp and Paperboard, and Consumer Products segments. The Pulp and Paperboard segment manufactures and markets bleached paperboard; Solid Bleached Sulfate paperboard that is used to produce folding cartons, liquid packaging, cups and plates, blister and carded packaging, and top sheet and commercial printing items; and hardwood and softwood pulp, as well as offers services that include custom sheeting, slitting, and cutting. It sells its products to carton converters, folding carton converters, merchants, and commercial printers. The Consumer Products segment provides a line of at-home tissue products, including bath tissues, paper towels, facial tissues, and napkins; recycled fiber value grade products; and away-from-home tissues. This segment sells its products to retailers, including grocery, club, mass merchants, and discount stores. The company was incorporated in 2005 and is based in Spokane, Washington.
About Stora Enso Oyj
Stora Enso Oyj provides renewable solutions for the packaging, biomaterials, wooden constructions, and paper industries in Finland and internationally. It operates through Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, Paper, and Other segments. The company's Packaging Materials segment offers virgin and recycled fiber replace fossil-based materials with low-carbon, renewable and recyclable packaging materials for food and beverage, pharmaceutical, and transport packaging. Its Packaging Solutions segment develops and sells fiber-based packaging products and services, including converting corrugated boards and carton boards; and new materials, such as formed fiber and wood foams into standard and bespoke packaging solutions for retail, e-commerce, and industrials. The company's Biomaterials segment provides various pulp for packaging, paper, tissue, specialties, and hygiene product producers; and tall oil and turpentine from biomass. Its Wood Products segment offers wood-based solutions, including digital tools for design and construction of building projects with wood; applications for windows and doors; and pellets for sustainable heating solutions. The company's Forest segment engages in sustainable forest management, as well as supplies wood. Its Paper segments offers portfolio of products for print and office use. The company's Other segment produces electricity and heat. It serves packaging manufacturers, brand owners, paper merchants, publishers, retailers, printing houses, converters, and construction companies. The company was incorporated in 1996 and is headquartered in Helsinki, Finland.
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