Critical Survey: IT Tech Packaging (NYSE:ITP) and Suzano (NYSE:SUZ)

Suzano (NYSE:SUZ) and IT Tech Packaging (NYSE:ITP) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Insider & Institutional Ownership

2.5% of Suzano shares are held by institutional investors. Comparatively, 3.0% of IT Tech Packaging shares are held by institutional investors. 3.2% of IT Tech Packaging shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Suzano and IT Tech Packaging, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suzano	0	2	1	1	2.75
IT Tech Packaging	0	0	0	0	0.00

Suzano presently has a consensus target price of $12.20, indicating a potential upside of 42.94%. Given Suzano’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Suzano is more favorable than IT Tech Packaging.

Profitability

This table compares Suzano and IT Tech Packaging’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suzano	22.90%	25.25%	6.94%
IT Tech Packaging	-12.35%	-5.92%	-5.09%

Earnings & Valuation

This table compares Suzano and IT Tech Packaging”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suzano	$8.97 billion	1.18	$2.40 billion	$1.68	5.08
IT Tech Packaging	$78.94 million	0.04	-$9.95 million	($1.02)	-0.18

Suzano has higher revenue and earnings than IT Tech Packaging. IT Tech Packaging is trading at a lower price-to-earnings ratio than Suzano, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Suzano has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, IT Tech Packaging has a beta of -0.25, meaning that its stock price is 125% less volatile than the S&P 500.

Summary

Suzano beats IT Tech Packaging on 13 of the 15 factors compared between the two stocks.

About Suzano

Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. It operates through Pulp and Paper segments. The company offers coated and uncoated printing and writing papers, paperboards, tissue papers, and market and fluff pulps; and lignin. It also engages in the research, development, and production of biofuel; operation of port terminals; power generation and distribution business; commercialization of equipment and parts; industrialization, commercialization, and exporting of pulp and standing wood; road freight transport; biotechnology research and development; and commercialization of paper and computer materials. In addition, the company is involved in the business office, production packaging, and financial fundraising activities; research, development, production, commercialization, and distribution of wood-based textile fibers, yarns, and filaments produced from cellulose and microfibrillated cellulose; and research and development of wood raw materials for the textile industry. Suzano S.A. was formerly known as Suzano Papel e Celulose S.A. and changed its name to Suzano S.A. in April 2019. The company was founded in 1924 and is headquartered in Salvador, Brazil.

About IT Tech Packaging

IT Tech Packaging, Inc., together with its subsidiaries, engages in the production and distribution of paper products in the People's Republic of China. The company operates through three segments: Dongfang Paper, Tengsheng Paper, and Baoding Shengde. It offers corrugating medium papers to companies making corrugating cardboards; and offset printing papers to printing companies. The company also provides tissue paper products, including toilet papers, boxed and soft-packed tissues, handkerchief tissues, and paper napkins, as well as bathroom and kitchen paper towels under the Dongfang Paper brand. In addition, it produces and sells non-medical single-use face masks, and medical face masks. The company was formerly known as Orient Paper, Inc. and changed its name to IT Tech Packaging, Inc. in August 2018. The company is headquartered in Baoding, the People's' Republic of China.