Contrasting International Paper (NYSE:IP) and Magnera (NYSE:MAGN)

Magnera (NYSE:MAGN) and International Paper (NYSE:IP) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, dividends, valuation, profitability, institutional ownership, risk and analyst recommendations.

Institutional & Insider Ownership

76.9% of Magnera shares are owned by institutional investors. Comparatively, 81.9% of International Paper shares are owned by institutional investors. 2.3% of Magnera shares are owned by company insiders. Comparatively, 0.6% of International Paper shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

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%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$1.31 billion	0.55	-$60.00 million	($18.34)	-1.10
International Paper	$18.62 billion	1.48	$557.00 million	$1.57	33.37

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.

Risk & Volatility

Magnera has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500. Comparatively, International Paper has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Magnera and International Paper, as reported by MarketBeat.

	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 target price of $24.00, indicating a potential upside of 19.05%. International Paper has a consensus target price of $54.86, indicating a potential upside of 4.72%. 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.