International Paper (NYSE:IP – Get Free Report) and Magnera (NYSE:MAGN – Get Free Report) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
Volatility & Risk
International Paper has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Magnera has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.
Earnings & Valuation
This table compares International Paper and Magnera”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| International Paper | $18.62 billion | 1.05 | $557.00 million | $1.57 | 35.83 |
| Magnera | $1.31 billion | 0.06 | -$79.05 million | ($18.34) | -1.23 |
Profitability
This table compares International Paper and Magnera’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| International Paper | 2.99% | 4.75% | 1.74% |
| Magnera | -6.97% | -22.40% | -4.57% |
Insider & Institutional Ownership
82.0% of International Paper shares are owned by institutional investors. Comparatively, 76.9% of Magnera shares are owned by institutional investors. 0.6% of International Paper shares are owned by insiders. Comparatively, 2.3% of Magnera shares are owned by 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.
Analyst Ratings
This is a summary of recent ratings and target prices for International Paper and Magnera, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| International Paper | 1 | 3 | 5 | 1 | 2.60 |
| Magnera | 0 | 0 | 1 | 0 | 3.00 |
International Paper currently has a consensus price target of $51.88, indicating a potential downside of 7.77%. Magnera has a consensus price target of $24.00, indicating a potential upside of 6.48%. Given Magnera’s stronger consensus rating and higher possible upside, analysts clearly 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 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.
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.
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