Analyzing Magnera (NYSE:MAGN) and International Paper (NYSE:IP)

International Paper (NYSE:IP) and Magnera (NYSE:MAGN) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for International Paper and Magnera, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Paper	1	3	5	1	2.60
Magnera	0	0	1	0	3.00

International Paper presently has a consensus target price of $54.86, suggesting a potential upside of 6.65%. Magnera has a consensus target price of $24.00, suggesting a potential upside of 25.07%. Given Magnera’s stronger consensus rating and higher probable upside, analysts clearly believe Magnera is more favorable than International Paper.

Earnings & Valuation

This table compares International Paper and Magnera”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Paper	$18.62 billion	1.45	$557.00 million	$1.57	32.76
Magnera	$1.31 billion	0.52	-$60.00 million	($18.34)	-1.05

International Paper has higher revenue and earnings than Magnera. Magnera is trading at a lower price-to-earnings ratio than International Paper, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares International Paper and Magnera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Paper	2.99%	4.75%	1.74%
Magnera	-6.97%	-10.62%	-3.97%

Volatility & Risk

International Paper has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500. Comparatively, Magnera has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.

Insider and Institutional Ownership

81.9% of International Paper shares are owned by institutional investors. Comparatively, 76.9% of Magnera shares are owned by institutional investors. 0.6% of International Paper shares are owned by company insiders. Comparatively, 2.3% of Magnera shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

International Paper beats Magnera on 11 of the 15 factors compared between the two stocks.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.

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.