Financial Contrast: Magnera (NYSE:MAGN) & Clearwater Paper (NYSE:CLW)

Clearwater Paper (NYSE:CLW) and Magnera (NYSE:MAGN) are both small-cap materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Valuation & Earnings

This table compares Clearwater Paper and Magnera”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearwater Paper	$1.56 billion	0.20	-$18.60 million	($3.04)	-6.35
Magnera	$3.20 billion	0.12	-$159.00 million	($2.01)	-5.49

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

Profitability

This table compares Clearwater Paper and Magnera’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%
Magnera	-3.41%	-10.77%	-2.87%

Analyst Ratings

This is a summary of recent ratings and price targets for Clearwater Paper and Magnera, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearwater Paper	1	6	1	0	2.00
Magnera	1	2	0	0	1.67

Clearwater Paper currently has a consensus target price of $19.83, indicating a potential upside of 2.75%. Magnera has a consensus target price of $16.00, indicating a potential upside of 45.07%. Given Magnera’s higher probable upside, analysts clearly believe Magnera is more favorable than Clearwater Paper.

Institutional and Insider Ownership

90.0% of Clearwater Paper shares are held by institutional investors. Comparatively, 76.9% of Magnera shares are held by institutional investors. 2.4% of Clearwater Paper shares are held by insiders. Comparatively, 1.0% of Magnera shares are held 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.

Volatility & Risk

Clearwater Paper has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Magnera has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.

Summary

Clearwater Paper beats Magnera on 8 of the 14 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 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.