Critical Survey: Magnera (MAGN) and Its Competitors

Magnera (NYSE:MAGN) is one of 18 public companies in the “Paper mills” industry, but how does it compare to its peers? We will compare Magnera to related businesses based on the strength of its analyst recommendations, earnings, valuation, risk, dividends, profitability and institutional ownership.

Insider & Institutional Ownership

76.9% of Magnera shares are owned by institutional investors. Comparatively, 73.4% of shares of all “Paper mills” companies are owned by institutional investors. 2.3% of Magnera shares are owned by insiders. Comparatively, 5.3% of shares of all “Paper mills” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Magnera has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Magnera’s peers have a beta of 1.30, meaning that their average stock price is 30% more volatile than the S&P 500.

Profitability

This table compares Magnera and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnera	-6.97%	-22.40%	-4.57%
Magnera Competitors	4.41%	9.01%	4.30%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Magnera and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	0	0	1	0	3.00
Magnera Competitors	129	983	500	111	2.34

Magnera presently has a consensus price target of $24.00, suggesting a potential upside of 18.99%. As a group, “Paper mills” companies have a potential upside of 10.15%. Given Magnera’s stronger consensus rating and higher possible upside, analysts clearly believe Magnera is more favorable than its peers.

Earnings and Valuation

This table compares Magnera and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Magnera	$702.00 million	-$79.05 million	-1.10
Magnera Competitors	$4.88 billion	$390.72 million	34.97

Magnera’s peers have higher revenue and earnings than Magnera. Magnera is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Magnera peers beat Magnera on 7 of the 12 factors compared.

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.