Magnera (NYSE:MAGN – Get Free Report) and UPM-Kymmene (OTCMKTS:UPMKY – Get Free Report) are both construction companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Institutional and Insider Ownership
76.9% of Magnera shares are owned by institutional investors. Comparatively, 0.6% of UPM-Kymmene shares are owned by institutional investors. 2.3% of Magnera shares are owned by insiders. Comparatively, 1.0% of UPM-Kymmene shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations for Magnera and UPM-Kymmene, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magnera | 0 | 0 | 1 | 0 | 3.00 |
| UPM-Kymmene | 0 | 0 | 0 | 0 | 0.00 |
Valuation & Earnings
This table compares Magnera and UPM-Kymmene”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Magnera | $702.00 million | 1.08 | -$60.00 million | ($18.34) | -1.17 |
| UPM-Kymmene | $12.38 billion | 1.14 | $1.77 billion | $2.65 | 9.98 |
UPM-Kymmene has higher revenue and earnings than Magnera. Magnera is trading at a lower price-to-earnings ratio than UPM-Kymmene, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Magnera and UPM-Kymmene’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% |
| UPM-Kymmene | 13.76% | 12.57% | 8.65% |
Risk and Volatility
Magnera has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, UPM-Kymmene has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
Summary
UPM-Kymmene beats Magnera on 8 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 UPM-Kymmene
UPM-Kymmene Oyj operates in the forest-based bio industry. It operates through UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and Other operations segments. The company provides eucalyptus, birch, and softwood pulp grades for tissue, specialty and graphic papers, boards, and packaging; sawn timber for construction, packaging, distribution, joinery, and furniture industries; and wood-based renewable diesel and renewable naphtha for fuel distributors, transportation, and oil and petrochemicals industries. It is also involved in the generation of electricity through hydro, nuclear, and condensing power plants. In addition, the company offers self-adhesive papers and film label stocks for product and information labelling to label printers and brand owners in food, beverage, personal care, pharmaceutical, and retail segments; label papers and release liners, fine papers, and flexible packaging, as well as label and packaging papers production lines for retailers, printers, publishers, distributors, and paper converters; and graphic papers for advertising, magazines, newspapers, and home and office to publishers, cataloguers, retailers, printers, and merchants. Further, it provides plywood and veneer products for construction, vehicle flooring, liquefied natural gas shipbuilding, and other manufacturing industries; wood and wood-based biomass, and forestry services for woodland and forest owners; outdoor products for construction, and granulates for injection molding and extrusion; wood-based lignin products for industrial use and cell culture hydrogel products for biomedical applications; and biomedical products. The company primarily operates in Europe, North America, and Asia. UPM-Kymmene Oyj was founded in 1995 and is headquartered in Helsinki, Finland.
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