Magnera (NYSE:MAGN – Get Free Report) and International Paper (NYSE:IP – Get Free Report) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Volatility & Risk
Magnera has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, International Paper has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
Insider and Institutional Ownership
76.9% of Magnera shares are held by institutional investors. Comparatively, 81.9% of International Paper shares are held by institutional investors. 2.3% of Magnera shares are held by company insiders. Comparatively, 0.6% of International Paper shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Magnera | $1.31 billion | 0.54 | -$60.00 million | ($18.34) | -1.09 |
| International Paper | $18.62 billion | 1.49 | $557.00 million | $1.57 | 33.57 |
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.
Profitability
This table compares Magnera and International Paper’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% |
| International Paper | 2.99% | 4.75% | 1.74% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Magnera and International Paper, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magnera | 0 | 0 | 1 | 0 | 3.00 |
| International Paper | 1 | 3 | 5 | 1 | 2.60 |
Magnera currently has a consensus price target of $24.00, suggesting a potential upside of 19.52%. International Paper has a consensus price target of $54.86, suggesting a potential upside of 4.08%. Given Magnera’s stronger consensus rating and higher probable upside, research analysts plainly believe Magnera is more favorable than International Paper.
Summary
International Paper beats Magnera on 11 of the 15 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 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.
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