Sylvamo (NYSE:SLVM) vs. Magnera (NYSE:MAGN) Critical Contrast

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sylvamo	7.96%	34.72%	11.11%
Magnera	-6.97%	-10.62%	-3.97%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sylvamo	$3.77 billion	0.77	$302.00 million	$7.21	9.89
Magnera	$1.31 billion	0.61	-$60.00 million	($18.34)	-1.22

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

Institutional and Insider Ownership

91.2% of Sylvamo shares are owned by institutional investors. Comparatively, 76.9% of Magnera shares are owned by institutional investors. 0.8% of Sylvamo 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 stock will outperform the market over the long term.

Volatility & Risk

Sylvamo has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Magnera has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Sylvamo and Magnera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sylvamo	1	1	1	0	2.00
Magnera	0	0	1	0	3.00

Sylvamo presently has a consensus price target of $92.00, indicating a potential upside of 29.08%. Magnera has a consensus price target of $24.00, indicating a potential upside of 7.14%. Given Sylvamo’s higher probable upside, equities analysts plainly believe Sylvamo is more favorable than Magnera.

Summary

Sylvamo beats Magnera on 10 of the 13 factors compared between the two stocks.

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.

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.