International Paper (NYSE:IP) and Sugarmade (OTCMKTS:SGMD) Head to Head Survey

International Paper (NYSE:IP) and Sugarmade (OTCMKTS:SGMD) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Risk and Volatility

International Paper has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Sugarmade has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.

Earnings and Valuation

This table compares International Paper and Sugarmade”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Paper	$18.62 billion	1.32	$557.00 million	($0.10)	-467.00
Sugarmade	$2.40 million	0.00	-$3.04 million	N/A	N/A

International Paper has higher revenue and earnings than Sugarmade.

Institutional and Insider Ownership

82.0% of International Paper shares are held by institutional investors. 0.6% of International Paper shares are held by company insiders. Comparatively, 5.2% of Sugarmade shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International Paper	-0.12%	2.63%	1.09%
Sugarmade	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for International Paper and Sugarmade, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Paper	3	4	6	0	2.23
Sugarmade	0	0	0	0	0.00

International Paper presently has a consensus target price of $53.46, suggesting a potential upside of 14.48%. Given International Paper’s stronger consensus rating and higher probable upside, research analysts plainly believe International Paper is more favorable than Sugarmade.

Summary

International Paper beats Sugarmade on 9 of the 11 factors compared between the two stocks.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.

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.