Head to Head Contrast: Veritiv (VRTV) & Sugarmade (SGMD)
Veritiv (NYSE:VRTV) and Sugarmade (OTCMKTS:SGMD) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.
Institutional and Insider Ownership
98.5% of Veritiv shares are held by institutional investors. 0.8% of Veritiv shares are held by insiders. Comparatively, 5.2% of Sugarmade shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Veritiv and Sugarmade’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Veritiv||$8.36 billion||0.06||-$13.30 million||($0.85)||-34.89|
|Sugarmade||$4.10 million||7.31||-$4.71 million||N/A||N/A|
Sugarmade has lower revenue, but higher earnings than Veritiv.
This table compares Veritiv and Sugarmade’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Veritiv has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Sugarmade has a beta of -4.45, meaning that its stock price is 545% less volatile than the S&P 500.
This is a summary of recent recommendations and price targets for Veritiv and Sugarmade, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Veritiv presently has a consensus target price of $39.50, suggesting a potential upside of 33.18%. Given Veritiv’s higher probable upside, equities analysts clearly believe Veritiv is more favorable than Sugarmade.
Veritiv beats Sugarmade on 8 of the 11 factors compared between the two stocks.
Veritiv Corporation operates as a business-to-business distributor of packaging, facility solutions, print, and publishing products and services in the United States, Canada, and internationally. It operates through four segments: Packaging, Facility Solutions, Print, and Publishing. The Packaging segment offers standard and custom packaging solutions. The Facility Solutions segment sources and sells cleaning, break-room, and other supplies, such as towels, tissues, wipers and dispensers, can liners, commercial cleaning chemicals, soaps and sanitizers, sanitary maintenance supplies and equipment, safety and hazard supplies, and shampoos and amenities. The Print segment sells and distributes commercial printing, writing, copying, digital, wide format, and specialty paper products; and graphics consumables and equipment. It also provides customized paper conversion services of commercial printing paper for distribution to document centers and form printers. The Publishing segment sells and distributes coated and uncoated commercial printing papers to publishers, retailers, converters, printers, and specialty businesses for use in magazines, catalogs, books, directories, gaming, couponing, retail inserts, and direct mail. This segment also provides print management, procurement, and supply chain management solutions. The company also offers logistics and supply chain management solutions. It offers its products under the Endurance, nordic+, Econosource, Comet, Starbrite Opaque Select, TUFflex, Reliable, and Spring Grove brands, as well as other brands to printers, publishers, data centers, manufacturers, higher education institutions, healthcare facilities, sporting and performance arenas, retail stores, government agencies, property managers, and building service contractors. As of March 1, 2018, the company operated 170 distribution centers. Veritiv Corporation was incorporated in 2013 and is based in Atlanta, Georgia.
Sugarmade, Inc. provides paper products derived from non-wood sources. The company produces and wholesales custom printed and generic supplies, including double poly paper, disposable, clear, plastic cold, paper coffee, yogurt, and ice cream cups, as well as cup lids, cup sleeves, food containers, soup containers, plastic spoons, and other products for quick service restaurant industry. It also engages in the manufacturing and distribution of various technologies and products, such as soil containing grow bags used in greenhouses, odor-resistant storage and transport products, lights to enhanced indoor cultivation, and other products that support the legal cultivation and processing of cannabis and other agricultural products through caligrownsupplies.com Website to distributors and retailers. In addition, the company distributes paper made from reclaimed sugarcane fiber; and offers Sriracha Seasoning Stix and Seasoning Stix blends through SrirachaStix.com Web platform. Sugarmade, Inc. was founded in 2009 and is headquartered in City of Industry, California.
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