Comparing Clearwater Paper (NYSE:CLW) & IT Tech Packaging (NYSE:ITP)

IT Tech Packaging (NYSE:ITPGet Free Report) and Clearwater Paper (NYSE:CLWGet Free Report) are both small-cap materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Insider & Institutional Ownership

3.0% of IT Tech Packaging shares are held by institutional investors. Comparatively, 90.0% of Clearwater Paper shares are held by institutional investors. 3.2% of IT Tech Packaging shares are held by insiders. Comparatively, 2.4% of Clearwater Paper shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for IT Tech Packaging and Clearwater Paper, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IT Tech Packaging 0 0 0 0 0.00
Clearwater Paper 1 5 2 0 2.12

Clearwater Paper has a consensus target price of $18.50, indicating a potential downside of 11.65%. Given Clearwater Paper’s stronger consensus rating and higher possible upside, analysts clearly believe Clearwater Paper is more favorable than IT Tech Packaging.

Profitability

This table compares IT Tech Packaging and Clearwater Paper’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IT Tech Packaging -12.35% -5.92% -5.09%
Clearwater Paper -3.24% -7.95% -4.06%

Risk & Volatility

IT Tech Packaging has a beta of -0.24, suggesting that its share price is 124% less volatile than the S&P 500. Comparatively, Clearwater Paper has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Valuation & Earnings

This table compares IT Tech Packaging and Clearwater Paper”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IT Tech Packaging $78.94 million 0.04 -$9.95 million ($1.02) -0.17
Clearwater Paper $1.56 billion 0.22 -$18.60 million ($3.04) -6.89

IT Tech Packaging has higher earnings, but lower revenue than Clearwater Paper. Clearwater Paper is trading at a lower price-to-earnings ratio than IT Tech Packaging, indicating that it is currently the more affordable of the two stocks.

Summary

Clearwater Paper beats IT Tech Packaging on 9 of the 14 factors compared between the two stocks.

About IT Tech Packaging

(Get Free Report)

IT Tech Packaging, Inc., together with its subsidiaries, engages in the production and distribution of paper products in the People's Republic of China. The company operates through three segments: Dongfang Paper, Tengsheng Paper, and Baoding Shengde. It offers corrugating medium papers to companies making corrugating cardboards; and offset printing papers to printing companies. The company also provides tissue paper products, including toilet papers, boxed and soft-packed tissues, handkerchief tissues, and paper napkins, as well as bathroom and kitchen paper towels under the Dongfang Paper brand. In addition, it produces and sells non-medical single-use face masks, and medical face masks. The company was formerly known as Orient Paper, Inc. and changed its name to IT Tech Packaging, Inc. in August 2018. The company is headquartered in Baoding, the People's' Republic of China.

About Clearwater Paper

(Get Free Report)

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.

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