Critical Review: Magnera (NYSE:MAGN) versus Orchids Paper Products (OTCMKTS:TISUQ)

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

Analyst Recommendations

This is a summary of current ratings and target prices for Orchids Paper Products and Magnera, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orchids Paper Products	0	0	0	0	0.00
Magnera	0	0	1	0	3.00

Magnera has a consensus target price of $24.00, suggesting a potential upside of 20.97%. Given Magnera’s stronger consensus rating and higher probable upside, analysts clearly believe Magnera is more favorable than Orchids Paper Products.

Institutional and Insider Ownership

76.9% of Magnera shares are owned by institutional investors. 11.4% of Orchids Paper Products shares are owned by insiders. Comparatively, 2.3% of Magnera shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Orchids Paper Products and Magnera”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orchids Paper Products	N/A	N/A	N/A	N/A	N/A
Magnera	$1.31 billion	0.54	-$60.00 million	($18.34)	-1.08

Orchids Paper Products has higher earnings, but lower revenue than Magnera.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orchids Paper Products	N/A	N/A	N/A
Magnera	-6.97%	-10.62%	-3.97%

Summary

Magnera beats Orchids Paper Products on 5 of the 9 factors compared between the two stocks.

About Orchids Paper Products

Orchids Paper Products Company is a tissue paper company that manufacturers and converts tissue product for the private label consumer market.

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.