Magnera (NYSE:MAGN – Get Free Report) and Sylvamo (NYSE:SLVM – Get Free Report) are both construction companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.
Analyst Recommendations
This is a summary of current ratings and target prices 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 11.84%. Sylvamo has a consensus target price of $92.00, suggesting a potential upside of 34.63%. Given Sylvamo’s higher probable upside, analysts clearly believe Sylvamo is more favorable than Magnera.
Risk & Volatility
Institutional and Insider Ownership
76.9% of Magnera shares are owned by institutional investors. Comparatively, 91.2% of Sylvamo shares are owned by institutional investors. 2.3% of Magnera shares are owned by company insiders. Comparatively, 0.8% of Sylvamo shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
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% | -10.62% | -3.97% |
Sylvamo | 7.96% | 34.72% | 11.11% |
Earnings and Valuation
This table compares Magnera and Sylvamo”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Magnera | $702.00 million | 1.08 | -$60.00 million | ($18.34) | -1.17 |
Sylvamo | $3.77 billion | 0.74 | $302.00 million | $7.21 | 9.48 |
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.
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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