Magnera (NYSE:MAGN) vs. Klabin (OTCMKTS:KLBAY) Head to Head Survey

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

Insider and Institutional Ownership

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Klabin and Magnera, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Klabin	0	2	0	1	2.67
Magnera	1	2	0	0	1.67

Magnera has a consensus target price of $16.00, suggesting a potential upside of 37.00%. Given Magnera’s higher probable upside, analysts plainly believe Magnera is more favorable than Klabin.

Earnings and Valuation

This table compares Klabin and Magnera”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Klabin	$3.71 billion	6.40	$251.30 million	$0.17	44.71
Magnera	$3.20 billion	0.13	-$159.00 million	($2.01)	-5.81

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

Profitability

This table compares Klabin and Magnera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Klabin	1.26%	1.72%	0.42%
Magnera	-3.41%	-10.77%	-2.87%

Volatility & Risk

Klabin has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, Magnera has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500.

Summary

Klabin beats Magnera on 10 of the 14 factors compared between the two stocks.

About Klabin

Klabin S.A., together with its subsidiaries, produces and exports packaging paper and sustainable paper packaging solutions in Brazil and internationally. The company engages in the planting of pine and eucalyptus; and forestry management business. It also produces and sells hardwood (eucalyptus), softwood (pine), and fluffed pulp; and paperboard, sackraft, Kraftliner paper, and recycled paper. In addition, the company offers industrial bags, corrugated boxes, and other packaging products. Klabin S.A. was founded in 1899 and is headquartered in São Paulo, Brazil.

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.