Head-To-Head Analysis: Suzano (NYSE:SUZ) & Magnera (NYSE:MAGN)

Magnera (NYSE:MAGN) and Suzano (NYSE:SUZ) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Valuation and Earnings

This table compares Magnera and Suzano”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$1.31 billion	0.56	-$60.00 million	($18.34)	-1.12
Suzano	$47.40 billion	0.27	-$1.31 billion	$0.63	15.62

Magnera has higher earnings, but lower revenue than Suzano. Magnera is trading at a lower price-to-earnings ratio than Suzano, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Magnera and Suzano’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnera	-6.97%	-10.62%	-3.97%
Suzano	-14.93%	-17.30%	-4.50%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Magnera and Suzano, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	0	0	1	0	3.00
Suzano	0	1	0	0	2.00

Magnera currently has a consensus price target of $24.00, suggesting a potential upside of 16.90%. Given Magnera’s stronger consensus rating and higher probable upside, analysts clearly believe Magnera is more favorable than Suzano.

Insider and Institutional Ownership

76.9% of Magnera shares are owned by institutional investors. Comparatively, 2.5% of Suzano shares are owned by institutional investors. 2.3% of Magnera shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Magnera has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, Suzano has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500.

Summary

Magnera beats Suzano on 11 of the 14 factors compared between the two stocks.

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.

About Suzano

Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. It operates through Pulp and Paper segments. The company offers coated and uncoated printing and writing papers, paperboards, tissue papers, and market and fluff pulps; and lignin. It also engages in the research, development, and production of biofuel; operation of port terminals; power generation and distribution business; commercialization of equipment and parts; industrialization, commercialization, and exporting of pulp and standing wood; road freight transport; biotechnology research and development; and commercialization of paper and computer materials. In addition, the company is involved in the business office, production packaging, and financial fundraising activities; research, development, production, commercialization, and distribution of wood-based textile fibers, yarns, and filaments produced from cellulose and microfibrillated cellulose; and research and development of wood raw materials for the textile industry. Suzano S.A. was formerly known as Suzano Papel e Celulose S.A. and changed its name to Suzano S.A. in April 2019. The company was founded in 1924 and is headquartered in Salvador, Brazil.