Analyzing IT Tech Packaging (NYSE:ITP) & Magnera (NYSE:MAGN)

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

Insider and Institutional Ownership

3.0% of IT Tech Packaging shares are held by institutional investors. Comparatively, 76.9% of Magnera shares are held by institutional investors. 3.2% of IT Tech Packaging shares are held by insiders. Comparatively, 1.0% of Magnera shares are held 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 breakdown of recent recommendations for IT Tech Packaging and Magnera, as reported by MarketBeat.com.

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

Magnera has a consensus target price of $16.00, indicating a potential upside of 23.70%. Given Magnera’s stronger consensus rating and higher possible upside, analysts clearly believe Magnera is more favorable than IT Tech Packaging.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
IT Tech Packaging	$78.94 million	0.04	-$9.95 million	($1.02)	-0.17
Magnera	$3.20 billion	0.14	-$159.00 million	($1.96)	-6.60

IT Tech Packaging has higher earnings, but lower revenue 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
IT Tech Packaging	-12.35%	-5.92%	-5.09%
Magnera	-3.41%	-10.77%	-2.87%

Risk and Volatility

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

Summary

Magnera beats IT Tech Packaging on 8 of the 13 factors compared between the two stocks.

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.

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.