Head-To-Head Survey: Sugarmade (OTCMKTS:SGMD) and Sylvamo (NYSE:SLVM)

Sugarmade (OTCMKTS:SGMD) and Sylvamo (NYSE:SLVM) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

91.2% of Sylvamo shares are owned by institutional investors. 5.2% of Sugarmade shares are owned by insiders. Comparatively, 0.7% of Sylvamo shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sugarmade and Sylvamo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sugarmade	0	0	0	0	0.00
Sylvamo	1	1	1	0	2.00

Sylvamo has a consensus price target of $75.00, indicating a potential upside of 48.03%. Given Sylvamo’s stronger consensus rating and higher possible upside, analysts plainly believe Sylvamo is more favorable than Sugarmade.

Volatility & Risk

Sugarmade has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500. Comparatively, Sylvamo has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Earnings and Valuation

This table compares Sugarmade and Sylvamo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sugarmade	$2.40 million	0.00	-$3.04 million	N/A	N/A
Sylvamo	$3.69 billion	0.56	$302.00 million	$6.84	7.41

Sylvamo has higher revenue and earnings than Sugarmade.

Profitability

This table compares Sugarmade and Sylvamo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sugarmade	N/A	N/A	N/A
Sylvamo	7.71%	32.60%	10.64%

Summary

Sylvamo beats Sugarmade on 10 of the 11 factors compared between the two stocks.

About Sugarmade

Sugarmade, Inc. engages in the paper and paper-based products business in the United States. It operates through three segments: Paper and Paper-Based Products, Non-Medical Supplies, and Cannabis Products Delivery Service and Sales. The company also produces and wholesales custom printed and generic supplies, such as plastic cold cups, paper coffee cups, yogurt cups, ice cream cups, cup lids, cup sleeves, edible packaging, food containers, soup containers, plastic spoons, and other related products to quick-service restaurants. In addition, it offers non-medical personal protective equipment. Further, the company operates the cannabis products delivery and sale services under the BudCars, Lemon Glow, and Nug Avenue brand names. It also offers its products through CarryOutSupplies.com website. Sugarmade, Inc. was founded in 2009 and is based in Monrovia, California.

About Sylvamo

Sylvamo Corporation produces and markets uncoated freesheet for cutsize, offset paper, and pulp in Latin America, Europe, and North America. The company operates through Europe, Latin America, and North America segments. The Europe segment offers copy, tinted, and colored laser printing paper under REY Adagio and Pro-Design brands; and graphic and high-speed inkjet printing papers under the brand Jetstar; as well as produces uncoated freesheet papers. The Latin America segment focuses on uncoated freesheet paper under Chamex, Chamequinho and Chambril brands, as well as produces HP papers. This segment also operates integrated mills and non-integrated mills. The North America segment offers imaging, commercial printing, and converting papers, as well as uncoated papers under Hammermill, Springhill, Williamsburg, Accent, DRM and Postmark brand names. It distributes its products through a variety of channels, including retail merchants, e-commerce, agents, resellers, and paper distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.