Critical Review: Magnera (MAGN) vs. Its Competitors

Magnera (NYSE:MAGN) is one of 18 publicly-traded companies in the “Paper mills” industry, but how does it weigh in compared to its rivals? We will compare Magnera to similar businesses based on the strength of its valuation, dividends, risk, profitability, analyst recommendations, institutional ownership and earnings.

Profitability

This table compares Magnera and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnera	-6.97%	-22.40%	-4.57%
Magnera Competitors	4.41%	9.01%	4.30%

Institutional & Insider Ownership

76.9% of Magnera shares are held by institutional investors. Comparatively, 73.4% of shares of all “Paper mills” companies are held by institutional investors. 2.3% of Magnera shares are held by company insiders. Comparatively, 5.3% of shares of all “Paper mills” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Magnera has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Magnera’s rivals have a beta of 1.30, suggesting that their average stock price is 30% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Magnera and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	0	0	1	0	3.00
Magnera Competitors	129	983	500	111	2.34

Magnera presently has a consensus target price of $24.00, suggesting a potential upside of 16.67%. As a group, “Paper mills” companies have a potential upside of 11.55%. Given Magnera’s stronger consensus rating and higher possible upside, analysts clearly believe Magnera is more favorable than its rivals.

Earnings & Valuation

This table compares Magnera and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Magnera	$1.31 billion	-$79.05 million	-1.12
Magnera Competitors	$4.92 billion	$390.72 million	34.88

Magnera’s rivals have higher revenue and earnings than Magnera. Magnera is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Magnera rivals beat Magnera on 8 of the 13 factors compared.

Magnera Company Profile

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.