Comparing International Paper (NYSE:IP) & Magnera (NYSE:MAGN)

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

Volatility and Risk

International Paper has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Magnera has a beta of 1.66, meaning that its share 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Paper	$18.62 billion	1.48	$557.00 million	$1.57	33.37
Magnera	$1.31 billion	0.55	-$60.00 million	($18.34)	-1.10

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.

Analyst Ratings

This is a summary of current recommendations and price targets 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 currently has a consensus target price of $54.86, suggesting a potential upside of 4.72%. Magnera has a consensus target price of $24.00, suggesting a potential upside of 19.05%. Given Magnera’s stronger consensus rating and higher possible upside, analysts clearly believe Magnera is more favorable than International Paper.

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%

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.