Cascades (CADNF) vs. Its Competitors Critical Analysis

Cascades (OTCMKTS:CADNF) is one of 70 public companies in the “Containers & Packaging” industry, but how does it weigh in compared to its peers? We will compare Cascades to related companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, earnings, profitability and valuation.

Earnings & Valuation

This table compares Cascades and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cascades	N/A	N/A	-12.94
Cascades Competitors	$6.07 billion	$222.53 million	13.15

Cascades’ peers have higher revenue and earnings than Cascades. Cascades is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

21.8% of Cascades shares are held by institutional investors. Comparatively, 54.4% of shares of all “Containers & Packaging” companies are held by institutional investors. 13.5% of shares of all “Containers & Packaging” companies are held by company 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.

Dividends

Cascades pays an annual dividend of $0.16 per share and has a dividend yield of 1.2%. Cascades pays out -16.0% of its earnings in the form of a dividend. As a group, “Containers & Packaging” companies pay a dividend yield of 4.7% and pay out -80.3% of their earnings in the form of a dividend. Cascades lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Cascades and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cascades	0	1	4	0	2.80
Cascades Competitors	384	2328	3387	84	2.51

As a group, “Containers & Packaging” companies have a potential upside of 32.51%. Given Cascades’ peers higher probable upside, analysts clearly believe Cascades has less favorable growth aspects than its peers.

Profitability

This table compares Cascades and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cascades	N/A	N/A	N/A
Cascades Competitors	-29.38%	-32.92%	2.01%

Summary

Cascades peers beat Cascades on 9 of the 13 factors compared.

About Cascades

Cascades Inc. produces, converts, and markets packaging and tissue products in Canada and the United States. The company operates through three segments: Containerboard, Specialty Products, and Tissue Papers. It offers various packaging solutions and tissue products comprised of recycled fibers; tissue papers, comprising parent rolls of virgin and recycled fibres; specialty products, including uncoated recycled boxboards; and containerboards. It also engages in the recovery and recycling activities. Cascades Inc. was incorporated in 1964 and is headquartered in Kingsey Falls, Canada.