Head-To-Head Survey: Nine Dragons Paper (OTCMKTS:NDGPY) vs. Magnera (NYSE:MAGN)

Nine Dragons Paper (OTCMKTS:NDGPY) and Magnera (NYSE:MAGN) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Risk & Volatility

Nine Dragons Paper has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Magnera has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

Insider & Institutional Ownership

76.9% of Magnera shares are held by institutional investors. 2.3% of Magnera shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Nine Dragons Paper and Magnera”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nine Dragons Paper	$8.25 billion	0.24	$107.12 million	N/A	N/A
Magnera	$702.00 million	1.08	-$60.00 million	($18.34)	-1.17

Nine Dragons Paper has higher revenue and earnings than Magnera.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nine Dragons Paper	N/A	N/A	N/A
Magnera	-6.97%	-10.62%	-3.97%

Analyst Recommendations

This is a breakdown of current recommendations for Nine Dragons Paper and Magnera, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nine Dragons Paper	0	0	0	0	0.00
Magnera	0	0	1	0	3.00

Magnera has a consensus price target of $24.00, suggesting a potential upside of 11.84%. Given Magnera’s stronger consensus rating and higher possible upside, analysts clearly believe Magnera is more favorable than Nine Dragons Paper.

Summary

Magnera beats Nine Dragons Paper on 7 of the 12 factors compared between the two stocks.

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.

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.