Head-To-Head Analysis: Stella-Jones (OTCMKTS:STLJF) and Magnera (NYSE:MAGN)

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Stella-Jones and Magnera, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stella-Jones	0	2	2	0	2.50
Magnera	1	2	0	0	1.67

Magnera has a consensus target price of $16.00, suggesting a potential upside of 27.80%. Given Magnera’s higher probable upside, analysts clearly believe Magnera is more favorable than Stella-Jones.

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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Stella-Jones and Magnera”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stella-Jones	$2.50 billion	1.08	$241.19 million	$1.47	33.58
Magnera	$3.20 billion	0.14	-$159.00 million	($2.01)	-6.23

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

Profitability

This table compares Stella-Jones and Magnera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stella-Jones	8.66%	14.92%	7.39%
Magnera	-3.41%	-10.77%	-2.87%

Summary

Stella-Jones beats Magnera on 9 of the 13 factors compared between the two stocks.

About Stella-Jones

Stella-Jones Inc. produces and sells pressure-treated wood products in Canada and the United States. It operates through two segments, Pressure-Treated Wood; and Logs and Lumber. The company offers railway ties and timbers for short line and commercial railroad operators; and wood utility poles for electrical utilities and telecommunication companies. It also provides residential lumber and accessories to retailers for outdoor applications; industrial products, which include wood for railway bridges and crossings, marine and foundation pilings, construction timbers, and coal tar-based products; and lumber for local home-building markets. Stella-Jones Inc. was incorporated in 1992 and is headquartered in Saint-Laurent, Canada.

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.