Head-To-Head Comparison: Suzano (NYSE:SUZ) and Magnera (NYSE:MAGN)

Suzano (NYSE:SUZ) and Magnera (NYSE:MAGN) are both materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, dividends, analyst recommendations, profitability, valuation and risk.

Institutional & Insider Ownership

2.5% of Suzano shares are owned by institutional investors. Comparatively, 76.9% of Magnera shares are owned by institutional investors. 1.0% of Magnera shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Suzano and Magnera”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suzano	$8.97 billion	1.30	$2.40 billion	$1.26	7.45
Magnera	$3.20 billion	0.14	-$159.00 million	($2.01)	-6.20

Suzano has higher revenue and earnings than Magnera. Magnera is trading at a lower price-to-earnings ratio than Suzano, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Suzano and Magnera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suzano	1	1	2	0	2.25
Magnera	1	2	0	0	1.67

Suzano presently has a consensus price target of $13.20, suggesting a potential upside of 40.65%. Magnera has a consensus price target of $16.00, suggesting a potential upside of 28.30%. Given Suzano’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Suzano is more favorable than Magnera.

Profitability

This table compares Suzano and Magnera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suzano	17.20%	14.92%	4.18%
Magnera	-3.41%	-10.77%	-2.87%

Risk and Volatility

Suzano has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Magnera has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Summary

Suzano beats Magnera on 11 of the 14 factors compared between the two stocks.

About Suzano

Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. It operates through Pulp and Paper segments. The company offers coated and uncoated printing and writing papers, paperboards, tissue papers, and market and fluff pulps; and lignin. It also engages in the research, development, and production of biofuel; operation of port terminals; power generation and distribution business; commercialization of equipment and parts; industrialization, commercialization, and exporting of pulp and standing wood; road freight transport; biotechnology research and development; and commercialization of paper and computer materials. In addition, the company is involved in the business office, production packaging, and financial fundraising activities; research, development, production, commercialization, and distribution of wood-based textile fibers, yarns, and filaments produced from cellulose and microfibrillated cellulose; and research and development of wood raw materials for the textile industry. Suzano S.A. was formerly known as Suzano Papel e Celulose S.A. and changed its name to Suzano S.A. in April 2019. The company was founded in 1924 and is headquartered in Salvador, Brazil.

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.