Financial Comparison: Magnera (NYSE:MAGN) & Stora Enso Oyj (OTCMKTS:SEOAY)
by Sarita Garza · The Markets DailyStora Enso Oyj (OTCMKTS:SEOAY – Get Free Report) and Magnera (NYSE:MAGN – Get Free Report) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.
Institutional & Insider Ownership
0.0% of Stora Enso Oyj shares are owned by institutional investors. Comparatively, 76.9% of Magnera shares are owned by institutional investors. 8.1% of Stora Enso Oyj shares are owned by company insiders. Comparatively, 1.0% of Magnera shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Stora Enso Oyj and Magnera”s 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 | 0.84 | $786.32 million | $0.84 | 13.31 |
| Magnera | $3.20 billion | 0.14 | -$159.00 million | ($1.96) | -6.59 |
Stora Enso Oyj has higher revenue and earnings than Magnera. Magnera 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.
Volatility and Risk
Stora Enso Oyj has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Magnera has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Stora Enso Oyj and Magnera, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stora Enso Oyj | 1 | 3 | 1 | 0 | 2.00 |
| Magnera | 1 | 2 | 0 | 0 | 1.67 |
Stora Enso Oyj currently has a consensus price target of $10.80, suggesting a potential downside of 3.43%. Magnera has a consensus price target of $16.00, suggesting a potential upside of 23.84%. Given Magnera’s higher probable upside, analysts plainly believe Magnera is more favorable than Stora Enso Oyj.
Profitability
This table compares Stora Enso Oyj and Magnera’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% |
| Magnera | -3.41% | -10.77% | -2.87% |
Summary
Stora Enso Oyj beats Magnera on 11 of the 14 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 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.