Comparing Magnera (NYSE:MAGN) & Suzano (NYSE:SUZ)

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

Insider & Institutional Ownership

76.9% of Magnera shares are held by institutional investors. Comparatively, 2.5% of Suzano shares are held by institutional investors. 1.0% of Magnera shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Magnera and Suzano”s 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)	-5.86
Suzano	$8.97 billion	1.24	$2.40 billion	$1.26	7.13

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 breakdown of recent ratings and price targets for Magnera and Suzano, as reported by MarketBeat.com.

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

Magnera presently has a consensus price target of $16.00, indicating a potential upside of 35.73%. Suzano has a consensus price target of $13.20, indicating a potential upside of 46.91%. Given Suzano’s stronger consensus rating and higher probable upside, analysts plainly believe Suzano is more favorable than Magnera.

Profitability

This table compares Magnera and Suzano’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%
Suzano	17.20%	14.92%	4.18%

Volatility and Risk

Magnera has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500. Comparatively, Suzano has a beta of 0.5, indicating that its stock price is 50% less volatile than the S&P 500.

Summary

Suzano 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 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.