Critical Analysis: IT Tech Packaging (NYSE:ITP) and Magnera (NYSE:MAGN)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$3.20 billion	0.15	-$159.00 million	($1.96)	-6.64
IT Tech Packaging	$78.94 million	0.04	-$9.95 million	($1.02)	-0.17

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

Insider & Institutional Ownership

76.9% of Magnera shares are owned by institutional investors. Comparatively, 3.0% of IT Tech Packaging shares are owned by institutional investors. 1.0% of Magnera shares are owned by company insiders. Comparatively, 3.2% of IT Tech Packaging shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Magnera and IT Tech Packaging’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%
IT Tech Packaging	-12.35%	-5.92%	-5.09%

Volatility & Risk

Magnera has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, IT Tech Packaging has a beta of -0.24, indicating that its stock price is 124% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Magnera and IT Tech Packaging, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	1	2	0	0	1.67
IT Tech Packaging	0	0	0	0	0.00

Magnera currently has a consensus target price of $16.00, suggesting a potential upside of 23.03%. Given Magnera’s stronger consensus rating and higher probable upside, equities analysts plainly believe Magnera is more favorable than IT Tech Packaging.

Summary

Magnera beats IT Tech Packaging on 8 of the 13 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 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.