Financial Analysis: Magnera (NYSE:MAGN) vs. BPM (OTCMKTS:BPMI)

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

Analyst Recommendations

This is a summary of recent recommendations for BPM and Magnera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BPM	0	0	0	0	0.00
Magnera	0	1	1	0	2.50

Magnera has a consensus target price of $22.50, indicating a potential upside of 23.69%. Given Magnera’s stronger consensus rating and higher possible upside, analysts clearly believe Magnera is more favorable than BPM.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BPM	N/A	N/A	N/A
Magnera	-6.97%	-10.62%	-3.97%

Institutional and Insider Ownership

76.9% of Magnera shares are held by institutional investors. 9.7% of BPM shares are held by insiders. Comparatively, 2.3% of Magnera shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares BPM and Magnera”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BPM	N/A	N/A	N/A	N/A	N/A
Magnera	$1.31 billion	0.49	-$60.00 million	($18.34)	-0.99

BPM has higher earnings, but lower revenue than Magnera.

Summary

Magnera beats BPM on 5 of the 9 factors compared between the two stocks.

About BPM

BPM Inc. manufactures machine glazed papers for confectionery and candy wrap, dairy, meat, poultry, bakery, and food wraps markets. The company offers converted materials; custom web, toll printing, converting, and rewinding services; and post-consumer recycled fine papers for commercial printing, offices, schools, and business applications. It also provides uncoated fine papers; flexible packaging papers; wet waxed papers; and interleaver papers, taffy wraps, overwraps, and confectionery wraps. The company was founded in 1929 and is based in Peshtigo, Wisconsin.

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.