Financial Contrast: International Paper (NYSE:IP) vs. Millennium Group International (NASDAQ:MGIH)

Millennium Group International (NASDAQ:MGIH) and International Paper (NYSE:IP) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

This table compares Millennium Group International and International Paper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Millennium Group International	N/A	N/A	N/A
International Paper	-5.45%	-0.16%	-0.07%

Institutional & Insider Ownership

0.3% of Millennium Group International shares are owned by institutional investors. Comparatively, 81.9% of International Paper shares are owned by institutional investors. 0.4% of International Paper shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Millennium Group International and International Paper”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Millennium Group International	$25.33 million	N/A	-$6.32 million	N/A	N/A
International Paper	$24.33 billion	0.93	$557.00 million	($2.61)	-16.41

International Paper has higher revenue and earnings than Millennium Group International.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Millennium Group International and International Paper, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millennium Group International	1	0	0	0	1.00
International Paper	3	2	10	0	2.47

International Paper has a consensus price target of $48.65, indicating a potential upside of 13.56%. Given International Paper’s stronger consensus rating and higher probable upside, analysts clearly believe International Paper is more favorable than Millennium Group International.

Volatility & Risk

Millennium Group International has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, International Paper has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.

Summary

International Paper beats Millennium Group International on 8 of the 11 factors compared between the two stocks.

About Millennium Group International

Millennium Group International Holdings Limited, an investment holding company, provides paper-based packaging solutions in Mainland China, Hong Kong, Vietnam, rest of Southeast Asian countries, Australia, the United States, and internationally. The company offers paper packaging products, including cardboard boxes, gift boxes, displays, corrugated outer cartons, manuals, and user guides to footwear products, sportswear, cookware and kitchenware, smartphones, food and beverage, paper and packaging, non-food-and-beverage-consumables, logistics, e-commerce, and home electronics industries; and packaging solutions to various luxury products industries. It also provides packaging products supply chain management solutions, and board games and various board game accessories. The company was founded in 1978 and is headquartered in Kwun Tong, Hong Kong. Millennium Group International Holdings Limited operates as a subsidiary of YC 1926 (BVI) Limited.

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.