Analyzing Cascades (CADNF) and Its Rivals

Cascades (OTCMKTS:CADNF) is one of 70 publicly-traded companies in the “Containers & Packaging” industry, but how does it weigh in compared to its peers? We will compare Cascades to similar companies based on the strength of its institutional ownership, valuation, earnings, analyst recommendations, dividends, profitability and risk.

Insider and Institutional Ownership

21.8% of Cascades shares are owned by institutional investors. Comparatively, 54.4% of shares of all “Containers & Packaging” companies are owned by institutional investors. 13.5% of shares of all “Containers & Packaging” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Cascades and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Cascades	N/A	N/A	-10.06
Cascades Competitors	$8.00 billion	$208.36 million	14.99

Cascades’ peers have higher revenue and earnings than Cascades. Cascades 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.

Dividends

Cascades pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. Cascades pays out -16.0% of its earnings in the form of a dividend. As a group, “Containers & Packaging” companies pay a dividend yield of 5.2% and pay out -111.1% of their earnings in the form of a dividend. Cascades lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cascades	N/A	N/A	N/A
Cascades Competitors	-28.73%	-31.75%	2.17%

Analyst Ratings

This is a summary of recent ratings for Cascades and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cascades	0	1	4	0	2.80
Cascades Competitors	380	2315	3363	84	2.51

As a group, “Containers & Packaging” companies have a potential upside of 31.78%. Given Cascades’ peers higher probable upside, analysts plainly believe Cascades has less favorable growth aspects than its peers.

Summary

Cascades peers beat Cascades on 9 of the 13 factors compared.

Cascades Company Profile

Cascades Inc. produces, converts, and markets packaging and tissue products in Canada and the United States. The company operates through three segments: Containerboard, Specialty Products, and Tissue Papers. It offers various packaging solutions and tissue products comprised of recycled fibers; tissue papers, comprising parent rolls of virgin and recycled fibres; specialty products, including uncoated recycled boxboards; and containerboards. It also engages in the recovery and recycling activities. Cascades Inc. was incorporated in 1964 and is headquartered in Kingsey Falls, Canada.