Magnera (NYSE:MAGN – Get Free Report) and Sylvamo (NYSE:SLVM – Get Free Report) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Profitability
This table compares Magnera and Sylvamo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Magnera | -6.97% | -22.40% | -4.57% |
| Sylvamo | 7.13% | 30.60% | 9.70% |
Earnings and Valuation
This table compares Magnera and Sylvamo”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Magnera | $702.00 million | 0.10 | -$79.05 million | ($18.34) | -1.10 |
| Sylvamo | $3.72 billion | 0.85 | $253.00 million | $6.43 | 11.96 |
Institutional & Insider Ownership
76.9% of Magnera shares are held by institutional investors. Comparatively, 91.2% of Sylvamo shares are held by institutional investors. 2.3% of Magnera shares are held by insiders. Comparatively, 0.8% of Sylvamo shares are held 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.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Magnera and Sylvamo, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magnera | 0 | 0 | 1 | 0 | 3.00 |
| Sylvamo | 1 | 1 | 1 | 0 | 2.00 |
Magnera presently has a consensus target price of $24.00, suggesting a potential upside of 18.99%. Sylvamo has a consensus target price of $89.00, suggesting a potential upside of 15.72%. Given Magnera’s stronger consensus rating and higher probable upside, analysts clearly believe Magnera is more favorable than Sylvamo.
Volatility & Risk
Magnera has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500. Comparatively, Sylvamo has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.
Summary
Sylvamo beats Magnera on 9 of the 13 factors compared between the two stocks.
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.
About Sylvamo
Sylvamo Corporation produces and markets uncoated freesheet for cutsize, offset paper, and pulp in Latin America, Europe, and North America. The company operates through Europe, Latin America, and North America segments. The Europe segment offers copy, tinted, and colored laser printing paper under REY Adagio and Pro-Design brands; and graphic and high-speed inkjet printing papers under the brand Jetstar; as well as produces uncoated freesheet papers. The Latin America segment focuses on uncoated freesheet paper under Chamex, Chamequinho and Chambril brands, as well as produces HP papers. This segment also operates integrated mills and non-integrated mills. The North America segment offers imaging, commercial printing, and converting papers, as well as uncoated papers under Hammermill, Springhill, Williamsburg, Accent, DRM and Postmark brand names. It distributes its products through a variety of channels, including retail merchants, e-commerce, agents, resellers, and paper distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.
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