Comparing Nine Dragons Paper (OTCMKTS:NDGPF) & Stora Enso Oyj (OTCMKTS:SEOAY)

Stora Enso Oyj (OTCMKTS:SEOAY) and Nine Dragons Paper (OTCMKTS:NDGPF) are both materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Stora Enso Oyj and Nine Dragons Paper, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stora Enso Oyj	1	2	1	0	2.00
Nine Dragons Paper	0	0	0	0	0.00

Stora Enso Oyj currently has a consensus target price of $10.80, suggesting a potential downside of 5.63%. Given Stora Enso Oyj’s stronger consensus rating and higher possible upside, analysts clearly believe Stora Enso Oyj is more favorable than Nine Dragons Paper.

Institutional & Insider Ownership

0.0% of Stora Enso Oyj shares are held by institutional investors. Comparatively, 13.8% of Nine Dragons Paper shares are held by institutional investors. 8.1% of Stora Enso Oyj shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Stora Enso Oyj pays an annual dividend of $0.15 per share and has a dividend yield of 1.3%. Nine Dragons Paper pays an annual dividend of $0.10 per share and has a dividend yield of 11.8%. Stora Enso Oyj pays out 17.9% of its earnings in the form of a dividend. Nine Dragons Paper pays out 26.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stora Enso Oyj	6.20%	2.38%	1.30%
Nine Dragons Paper	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stora Enso Oyj	$10.55 billion	0.86	$786.32 million	$0.84	13.62
Nine Dragons Paper	N/A	N/A	N/A	$0.38	2.23

Stora Enso Oyj has higher revenue and earnings than Nine Dragons Paper. Nine Dragons Paper 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 Nine Dragons Paper on 11 of the 13 factors compared between the two stocks.

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.

About Nine Dragons Paper

Nine Dragons Paper (Holdings) Limited, together with its subsidiaries, engages in the production and sale of packaging paper, recycled printing and writing paper, and specialty paper and pulp products in the People's Republic of China. The company offers linerboard products, including kraft, test, white top, and coated linerboards; corrugating medium containerboard products; corrugated cardboard products; carton box products; corrugated sheet products; and coated duplex boards. It also provides recycled printing and writing paper, such as uncoated wood-free paper and office paper; capacitor tissue paper; low and high voltage, ultra-high-voltage transformer coil winding, and heat-resistant insulating paper; and recycled and kraft pulp products. It also operates in Vietnam, Malaysia, and the United States. The company was founded in 1995 and is headquartered in Dongguan, the People's Republic of China. Nine Dragons Paper (Holdings) Limited operates as a subsidiary of Best Result Holdings Limited.