Financial Analysis: Klabin (OTCMKTS:KLBAY) versus Magnera (NYSE:MAGN)

Magnera (NYSE:MAGN) and Klabin (OTCMKTS:KLBAY) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Magnera and Klabin”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$3.20 billion	0.13	-$159.00 million	($2.01)	-5.79
Klabin	$3.71 billion	6.33	$251.30 million	$0.17	44.24

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magnera	-3.41%	-10.77%	-2.87%
Klabin	1.26%	1.72%	0.42%

Institutional & Insider Ownership

76.9% of Magnera shares are held by institutional investors. 1.0% of Magnera shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

Magnera has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Klabin has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Magnera and Klabin, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	1	2	0	0	1.67
Klabin	0	2	0	1	2.67

Magnera presently has a consensus price target of $16.00, indicating a potential upside of 37.46%. Given Magnera’s higher possible upside, analysts clearly believe Magnera is more favorable than Klabin.

Summary

Klabin beats Magnera on 10 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 Klabin

Klabin S.A., together with its subsidiaries, produces and exports packaging paper and sustainable paper packaging solutions in Brazil and internationally. The company engages in the planting of pine and eucalyptus; and forestry management business. It also produces and sells hardwood (eucalyptus), softwood (pine), and fluffed pulp; and paperboard, sackraft, Kraftliner paper, and recycled paper. In addition, the company offers industrial bags, corrugated boxes, and other packaging products. Klabin S.A. was founded in 1899 and is headquartered in São Paulo, Brazil.