Comparing BPM (OTCMKTS:BPMI) & Clearwater Paper (NYSE:CLW)

Clearwater Paper (NYSE:CLW) and BPM (OTCMKTS:BPMI) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Profitability

This table compares Clearwater Paper and BPM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clearwater Paper	-3.24%	-7.95%	-4.06%
BPM	N/A	N/A	N/A

Institutional and Insider Ownership

90.0% of Clearwater Paper shares are owned by institutional investors. 2.4% of Clearwater Paper shares are owned by company insiders. Comparatively, 9.7% of BPM shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Clearwater Paper and BPM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearwater Paper	1	5	2	0	2.12
BPM	0	0	0	0	0.00

Clearwater Paper presently has a consensus price target of $18.50, suggesting a potential downside of 10.89%. Given BPM’s higher possible upside, analysts clearly believe BPM is more favorable than Clearwater Paper.

Valuation & Earnings

This table compares Clearwater Paper and BPM”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearwater Paper	$1.56 billion	0.22	-$18.60 million	($3.04)	-6.83
BPM	N/A	N/A	N/A	N/A	N/A

BPM has lower revenue, but higher earnings than Clearwater Paper.

Summary

BPM beats Clearwater Paper on 5 of the 9 factors compared between the two stocks.

About Clearwater Paper

Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through Pulp and Paperboard, and Consumer Products segments. The Pulp and Paperboard segment manufactures and markets bleached paperboard; Solid Bleached Sulfate paperboard that is used to produce folding cartons, liquid packaging, cups and plates, blister and carded packaging, and top sheet and commercial printing items; and hardwood and softwood pulp, as well as offers services that include custom sheeting, slitting, and cutting. It sells its products to carton converters, folding carton converters, merchants, and commercial printers. The Consumer Products segment provides a line of at-home tissue products, including bath tissues, paper towels, facial tissues, and napkins; recycled fiber value grade products; and away-from-home tissues. This segment sells its products to retailers, including grocery, club, mass merchants, and discount stores. The company was incorporated in 2005 and is based in Spokane, Washington.

About BPM

BPM Inc. manufactures machine glazed papers for confectionery and candy wrap, dairy, meat, poultry, bakery, and food wraps markets. The company offers converted materials; custom web, toll printing, converting, and rewinding services; and post-consumer recycled fine papers for commercial printing, offices, schools, and business applications. It also provides uncoated fine papers; flexible packaging papers; wet waxed papers; and interleaver papers, taffy wraps, overwraps, and confectionery wraps. The company was founded in 1929 and is based in Peshtigo, Wisconsin.