Head to Head Review: Lee & Man Paper Manufacturing (OTCMKTS:LMPMF) vs. Sappi (OTCMKTS:SPPJY)

Sappi (OTCMKTS:SPPJY) and Lee & Man Paper Manufacturing (OTCMKTS:LMPMF) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Sappi and Lee & Man Paper Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sappi	-15.44%	-6.12%	-2.26%
Lee & Man Paper Manufacturing	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings for Sappi and Lee & Man Paper Manufacturing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sappi	0	1	0	0	2.00
Lee & Man Paper Manufacturing	0	0	0	0	0.00

Institutional & Insider Ownership

14.2% of Lee & Man Paper Manufacturing shares are held by institutional investors. 0.7% of Sappi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Sappi and Lee & Man Paper Manufacturing”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sappi	$5.42 billion	0.11	-$177.00 million	($1.11)	-0.86
Lee & Man Paper Manufacturing	N/A	N/A	N/A	$0.40	1.04

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

Summary

Lee & Man Paper Manufacturing beats Sappi on 6 of the 9 factors compared between the two stocks.

About Sappi

Sappi Limited, together with its subsidiaries, engages in the provision of materials made from woodfiber-based renewable resources in Europe, North America, and South Africa. The company manufacture and sells dissolving pulp, and wood and paper pulp; graphic papers, coated and uncoated papers, and casting and release papers; and packaging and specialty papers, including packaging and specialty papers, including flexible packaging papers, label papers, functional paper packaging products, containerboards, paperboards, silicone base papers, and dye sublimation papers. It also provides biomaterials, such as valida, lignin, furfural, and sweeteners, as well as forestry products; and engages in the treasury and insurance business. The company was founded in 1936 and is headquartered in Johannesburg, South Africa.

About Lee & Man Paper Manufacturing

Lee & Man Paper Manufacturing Limited, an investment holding company, engages in the manufacture and trading of packaging papers, pulps, and tissue papers in the People's Republic of China, Vietnam, Malaysia, Macau, and Hong Kong. The company operates through Packaging Paper, Tissue Paper, and Pulp segments. It offers various pulp products, such as dissolved pulps for use in viscose chemical fibers, bamboo fibers, glass papers, acetate fibers, refined rayons, etc.; unbleached bamboo kraft pulps for use in ecru life papers, environmental table wares, food bags, etc.; and bleached bamboo kraft pulps for use in tissue papers, fine papers, cigarette papers, cup papers, etc. The company also provides containerboard products, including kraft and test linerboards for use in cartons, graphic carton, paper bags, file boxes, paperboards, wall papers, etc.; and corrugating liners for use in corrugated layer and septi-layer of paperboards, and honeycomb-like products. In addition, it offers coated duplex board products for use in graphic cartons, color card printing, and offset printing, as well as in packaging of commodities, household appliances, IT products, medicine/health care products, food products, toys, gifts, ceramic products, stationery products, beverages, etc.; toilet rolls; and unbleached paper for use in various applications, such as baby care, menstruation, facial, sensitive skin, table, kitchen, etc. Lee & Man Paper Manufacturing Limited was founded in 1994 and is headquartered in North Point, Hong Kong.