Lee & Man Paper Manufacturing (OTCMKTS:LMPMY – Get Free Report) and Mercer International (NASDAQ:MERC – Get Free Report) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Lee & Man Paper Manufacturing and Mercer International, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Lee & Man Paper Manufacturing | 0 | 0 | 0 | 0 | N/A |
Mercer International | 0 | 4 | 0 | 0 | 2.00 |
Mercer International has a consensus target price of $9.38, suggesting a potential upside of 67.41%. Given Mercer International’s higher possible upside, analysts clearly believe Mercer International is more favorable than Lee & Man Paper Manufacturing.
Dividends
Institutional & Insider Ownership
0.0% of Lee & Man Paper Manufacturing shares are held by institutional investors. Comparatively, 85.8% of Mercer International shares are held by institutional investors. 4.2% of Mercer International shares are held by 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 Lee & Man Paper Manufacturing and Mercer International’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Lee & Man Paper Manufacturing | N/A | N/A | N/A |
Mercer International | -9.90% | -17.93% | -4.07% |
Valuation and Earnings
This table compares Lee & Man Paper Manufacturing and Mercer International’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Lee & Man Paper Manufacturing | N/A | N/A | N/A | $4.02 | 0.66 |
Mercer International | $1.99 billion | 0.19 | -$242.06 million | ($3.43) | -1.63 |
Lee & Man Paper Manufacturing has higher earnings, but lower revenue than Mercer International. Mercer International is trading at a lower price-to-earnings ratio than Lee & Man Paper Manufacturing, indicating that it is currently the more affordable of the two stocks.
Summary
Mercer International beats Lee & Man Paper Manufacturing on 6 of the 11 factors compared between the two stocks.
About Lee & Man Paper Manufacturing
Lee & Man Paper Manufacturing Limited, an investment holding company, engages in the manufacture and trading of packaging papers, pulps, and tissue papers in the People's Republic of China, Vietnam, Malaysia, Macau, and Hong Kong. The company operates through Packaging Paper, Tissue Paper, and Pulp segments. It offers various pulp products, such as dissolved pulps for use in viscose chemical fibers, bamboo fibers, glass papers, acetate fibers, refined rayons, etc.; unbleached bamboo kraft pulps for use in ecru life papers, environmental table wares, food bags, etc.; and bleached bamboo kraft pulps for use in tissue papers, fine papers, cigarette papers, cup papers, etc. The company also provides containerboard products, including kraft and test linerboards for use in cartons, graphic carton, paper bags, file boxes, paperboards, wall papers, etc.; and corrugating liners for use in corrugated layer and septi-layer of paperboards, and honeycomb-like products. In addition, it offers coated duplex board products for use in graphic cartons, color card printing, and offset printing, as well as in packaging of commodities, household appliances, IT products, medicine/health care products, food products, toys, gifts, ceramic products, stationery products, beverages, etc.; toilet rolls; and unbleached paper for use in various applications, such as baby care, menstruation, facial, sensitive skin, table, kitchen, etc. Lee & Man Paper Manufacturing Limited was founded in 1994 and is headquartered in North Point, Hong Kong.
About Mercer International
Mercer International Inc., together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp worldwide. The company operates through two segments, Pulp and Solid Wood. It manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills. The company also manufactures, distributes, and sells lumber, cross-laminated timber, finger joint lumber, glue-laminated timber, wood pallets, electricity, biofuels, and wood residuals. In addition, it generates and sells green energy produced from biomass cogeneration power plant to third party. Further, it produces and sells NBSK pulp manufactured from softwood; green energy using carbon-neutral biofuels, such as black liquor and wood waste; tall oil from black liquor for use as a chemical additive and green energy source; bio extractives and biomaterials, including lignin, turpentine, cellulose filaments, and sandalwood oil; and biofuels; as well as provides transportation and logistics services. The company sells its pulp to pulp markets, integrated paper and paperboard manufacturers; and lumber products to distributors, construction firms, secondary manufacturers, retail yards, and home centers. Mercer International Inc. was founded in 1968 and is headquartered in Vancouver, Canada.
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