Financial Review: Magnera (NYSE:MAGN) & Stora Enso Oyj (OTCMKTS:SEOAY)

Magnera (NYSE:MAGN) and Stora Enso Oyj (OTCMKTS:SEOAY) are both materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings and price targets for Magnera and Stora Enso Oyj, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	1	2	0	0	1.67
Stora Enso Oyj	2	1	1	0	1.75

Magnera presently has a consensus price target of $16.00, suggesting a potential upside of 34.70%. Given Magnera’s higher possible upside, equities research analysts clearly believe Magnera is more favorable than Stora Enso Oyj.

Institutional and Insider Ownership

76.9% of Magnera shares are held by institutional investors. Comparatively, 0.0% of Stora Enso Oyj shares are held by institutional investors. 1.0% of Magnera shares are held by insiders. Comparatively, 8.1% of Stora Enso Oyj shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Magnera has a beta of 1.75, indicating that its share price is 75% more volatile than the S&P 500. Comparatively, Stora Enso Oyj has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Profitability

This table compares Magnera and Stora Enso Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnera	-3.41%	-10.77%	-2.87%
Stora Enso Oyj	6.20%	2.31%	1.29%

Earnings & Valuation

This table compares Magnera and Stora Enso Oyj”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$3.20 billion	0.13	-$159.00 million	($2.01)	-5.91
Stora Enso Oyj	$10.55 billion	0.83	$786.32 million	$0.84	13.24

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

Summary

Stora Enso Oyj beats Magnera on 11 of the 14 factors compared between the two stocks.

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.

About Stora Enso Oyj

Stora Enso Oyj provides renewable solutions for the packaging, biomaterials, wooden constructions, and paper industries in Finland and internationally. It operates through Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, Paper, and Other segments. The company's Packaging Materials segment offers virgin and recycled fiber replace fossil-based materials with low-carbon, renewable and recyclable packaging materials for food and beverage, pharmaceutical, and transport packaging. Its Packaging Solutions segment develops and sells fiber-based packaging products and services, including converting corrugated boards and carton boards; and new materials, such as formed fiber and wood foams into standard and bespoke packaging solutions for retail, e-commerce, and industrials. The company's Biomaterials segment provides various pulp for packaging, paper, tissue, specialties, and hygiene product producers; and tall oil and turpentine from biomass. Its Wood Products segment offers wood-based solutions, including digital tools for design and construction of building projects with wood; applications for windows and doors; and pellets for sustainable heating solutions. The company's Forest segment engages in sustainable forest management, as well as supplies wood. Its Paper segments offers portfolio of products for print and office use. The company's Other segment produces electricity and heat. It serves packaging manufacturers, brand owners, paper merchants, publishers, retailers, printing houses, converters, and construction companies. The company was incorporated in 1996 and is headquartered in Helsinki, Finland.