Critical Survey: Magnera (MAGN) versus Its Peers

Magnera (NYSE:MAGN) is one of 18 public companies in the “Paper mills” industry, but how does it contrast to its peers? We will compare Magnera to related businesses based on the strength of its analyst recommendations, dividends, profitability, institutional ownership, risk, valuation and earnings.

Volatility and Risk

Magnera has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Magnera’s peers have a beta of 1.30, indicating that their average share price is 30% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magnera	-6.97%	-10.62%	-3.97%
Magnera Competitors	2.71%	8.21%	3.92%

Earnings and Valuation

This table compares Magnera and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Magnera	$1.31 billion	-$60.00 million	-1.22
Magnera Competitors	$4.98 billion	$119.73 million	34.84

Magnera’s peers have higher revenue and earnings than Magnera. Magnera 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Magnera and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	0	0	1	0	3.00
Magnera Competitors	130	990	500	113	2.34

Magnera presently has a consensus target price of $24.00, indicating a potential upside of 7.14%. As a group, “Paper mills” companies have a potential upside of 15.78%. Given Magnera’s peers higher probable upside, analysts plainly believe Magnera has less favorable growth aspects than its peers.

Institutional & Insider Ownership

76.9% of Magnera shares are held by institutional investors. Comparatively, 73.4% of shares of all “Paper mills” companies are held by institutional investors. 2.3% of Magnera shares are held by company insiders. Comparatively, 5.3% of shares of all “Paper mills” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

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

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.