Head-To-Head Survey: International Paper (NYSE:IP) vs. Magnera (NYSE:MAGN)

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

Institutional and Insider Ownership

82.0% 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 insiders. Comparatively, 2.3% of Magnera shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

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%	-22.40%	-4.57%

Analyst Recommendations

This is a summary of current recommendations and price targets for International Paper and Magnera, as reported by MarketBeat.com.

	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 currently has a consensus price target of $51.88, suggesting a potential downside of 9.40%. Magnera has a consensus price target of $24.00, suggesting a potential upside of 7.05%. Given Magnera’s stronger consensus rating and higher possible 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	1.07	$557.00 million	$1.57	36.47
Magnera	$702.00 million	0.11	-$79.05 million	($18.34)	-1.22

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.

Volatility and 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 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

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.