Financial Analysis: Magnera (NYSE:MAGN) versus Svenska Cellulosa Aktiebolaget SCA (publ) (OTCMKTS:SCABY)

Svenska Cellulosa Aktiebolaget SCA (publ) (OTCMKTS:SCABY) and Magnera (NYSE:MAGN) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Profitability

This table compares Svenska Cellulosa Aktiebolaget SCA (publ) and Magnera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Svenska Cellulosa Aktiebolaget SCA (publ)	N/A	N/A	N/A
Magnera	-3.41%	-10.77%	-2.87%

Insider and Institutional Ownership

76.9% of Magnera shares are held by institutional investors. 1.0% of Magnera 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.

Valuation & Earnings

This table compares Svenska Cellulosa Aktiebolaget SCA (publ) and Magnera”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Svenska Cellulosa Aktiebolaget SCA (publ)	N/A	N/A	N/A	N/A	N/A
Magnera	$3.20 billion	0.14	-$159.00 million	($2.01)	-6.22

Svenska Cellulosa Aktiebolaget SCA (publ) has higher earnings, but lower revenue than Magnera.

Analyst Ratings

This is a breakdown of current ratings for Svenska Cellulosa Aktiebolaget SCA (publ) and Magnera, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Svenska Cellulosa Aktiebolaget SCA (publ)	0	2	0	0	2.00
Magnera	1	2	0	0	1.67

Magnera has a consensus price target of $16.00, indicating a potential upside of 27.89%. Given Magnera’s higher probable upside, analysts clearly believe Magnera is more favorable than Svenska Cellulosa Aktiebolaget SCA (publ).

About Svenska Cellulosa Aktiebolaget SCA (publ)

Svenska Cellulosa Aktiebolaget SCA (publ), a forest products company, develops, manufactures, and sells forest, wood, pulp, and containerboard products in Sweden, the United States, Germany, the United Kingdom, rest of Europe, Asia, and internationally. It operates through five segments: Forest, Wood, Pulp, Containerboard, and Renewable Energy. The company offers various sawn wood products; wood solutions for industrial buildings comprise construction timber, outer panels, dimensionally planed timber, laths, base rafters, planks, and shaped timber products; wood solutions for merchants include joists, batten, and untreated and painted outer panel, as well as pressure-impregnated wood products; and marine and land transportation services, including forwarding services using RoRo vessels, container express, and road and rail. It also provides pulp products; bleached softwood kraft pulp and chemical thermomechanical pulp; and Kraftliner products for consumer durables, electronics, hazardous goods, industrial products, fruit and vegetables, frozen foods, etc. In addition, the company engages in the generation of energy from wind power projects, bioenergy, and liquid and solid biofuels; and manufacturing and sale of pellets. Svenska Cellulosa Aktiebolaget SCA (publ) was incorporated in 1915 and is headquartered in Sundsvall, Sweden.

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.