Critical Comparison: UPM-Kymmene Oyj (OTCMKTS:UPMMY) & Magnera (NYSE:MAGN)

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

Institutional and Insider Ownership

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

Analyst Ratings

This is a summary of current ratings and target prices for Magnera and UPM-Kymmene Oyj, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	1	2	0	0	1.67
UPM-Kymmene Oyj	0	0	0	0	0.00

Magnera presently has a consensus price target of $16.00, suggesting a potential upside of 29.87%. Given Magnera’s stronger consensus rating and higher possible upside, analysts plainly believe Magnera is more favorable than UPM-Kymmene Oyj.

Profitability

This table compares Magnera and UPM-Kymmene Oyj’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%
UPM-Kymmene Oyj	N/A	N/A	N/A

Earnings & Valuation

This table compares Magnera and UPM-Kymmene Oyj”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$3.20 billion	0.14	-$159.00 million	($2.01)	-6.13
UPM-Kymmene Oyj	N/A	N/A	N/A	N/A	N/A

UPM-Kymmene Oyj has lower revenue, but higher earnings than Magnera.

Summary

Magnera beats UPM-Kymmene Oyj on 5 of the 8 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 Oyj

UPM-Kymmene Oyj, together with its subsidiaries, engages in the forest-based bioindustry in Europe, North America, Asia, and internationally. It operates through UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and Other Operations segments. The company provides softwood, birch, and eucalyptus pulp for tissue, specialty, and graphic papers and packaging; sawn timber for joinery, packaging, furniture, planning, and construction industries; and wood-based renewable diesel and renewable naphtha for transport and petrochemical industry. It is also involved in the generation of electricity through hydro, thermal, and nuclear power plants. In addition, the company offers self-adhesive label materials for branding and promotion, information, and functional labeling in the food, beverage, personal care, pharmaceutical, and logistics segments; and specialty packaging materials, such as label papers, release liners, office papers, and flexible packaging for labeling, packing, commercial siliconizing, and printing, as well as graphic papers for advertising, publishing, and home and office use. Further, it provides plywood and veneer products for construction, vehicle flooring, liquefied natural gas shipbuilding, and parquet manufacturing, as well as for other industrial applications; wood and wood-based biomass, and forestry services for forest investors and owners; wood-based biomedical products, such as nano-fibrillar cellulose for clinical and life science applications; wood-based lignin products for industrial use; and UPM ProFi decking products and UPM formi granules. Additionally, the company offers financial portfolio management services. UPM-Kymmene Oyj was founded in 1871 and is headquartered in Helsinki, Finland.