Comparing Nine Dragons Paper (OTCMKTS:NDGPF) & Stora Enso Oyj (OTCMKTS:SEOAY)

Nine Dragons Paper (OTCMKTS:NDGPF) and Stora Enso Oyj (OTCMKTS:SEOAY) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Profitability

This table compares Nine Dragons Paper and Stora Enso Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nine Dragons Paper	N/A	N/A	N/A
Stora Enso Oyj	6.20%	2.38%	1.30%

Dividends

Nine Dragons Paper pays an annual dividend of $0.10 per share and has a dividend yield of 11.8%. Stora Enso Oyj pays an annual dividend of $0.15 per share and has a dividend yield of 1.3%. Nine Dragons Paper pays out 26.4% of its earnings in the form of a dividend. Stora Enso Oyj pays out 17.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Nine Dragons Paper and Stora Enso Oyj, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nine Dragons Paper	0	0	0	0	0.00
Stora Enso Oyj	1	2	1	0	2.00

Stora Enso Oyj has a consensus target price of $10.80, indicating a potential downside of 5.63%. Given Stora Enso Oyj’s stronger consensus rating and higher probable upside, analysts clearly believe Stora Enso Oyj is more favorable than Nine Dragons Paper.

Earnings and Valuation

This table compares Nine Dragons Paper and Stora Enso Oyj”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nine Dragons Paper	N/A	N/A	N/A	$0.38	2.23
Stora Enso Oyj	$10.55 billion	0.86	$786.32 million	$0.84	13.62

Stora Enso Oyj has higher revenue and earnings than Nine Dragons Paper. Nine Dragons Paper is trading at a lower price-to-earnings ratio than Stora Enso Oyj, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

13.8% of Nine Dragons Paper shares are owned by institutional investors. Comparatively, 0.0% of Stora Enso Oyj shares are owned by institutional investors. 8.1% of Stora Enso Oyj shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Stora Enso Oyj beats Nine Dragons Paper on 11 of the 13 factors compared between the two stocks.

About Nine Dragons Paper

Nine Dragons Paper (Holdings) Limited, together with its subsidiaries, engages in the production and sale of packaging paper, recycled printing and writing paper, and specialty paper and pulp products in the People's Republic of China. The company offers linerboard products, including kraft, test, white top, and coated linerboards; corrugating medium containerboard products; corrugated cardboard products; carton box products; corrugated sheet products; and coated duplex boards. It also provides recycled printing and writing paper, such as uncoated wood-free paper and office paper; capacitor tissue paper; low and high voltage, ultra-high-voltage transformer coil winding, and heat-resistant insulating paper; and recycled and kraft pulp products. It also operates in Vietnam, Malaysia, and the United States. The company was founded in 1995 and is headquartered in Dongguan, the People's Republic of China. Nine Dragons Paper (Holdings) Limited operates as a subsidiary of Best Result Holdings Limited.

About Stora Enso Oyj

Stora Enso Oyj provides renewable solutions for the packaging, biomaterials, wooden constructions, and paper industries in Finland and internationally. It operates through Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, Paper, and Other segments. The company's Packaging Materials segment offers virgin and recycled fiber replace fossil-based materials with low-carbon, renewable and recyclable packaging materials for food and beverage, pharmaceutical, and transport packaging. Its Packaging Solutions segment develops and sells fiber-based packaging products and services, including converting corrugated boards and carton boards; and new materials, such as formed fiber and wood foams into standard and bespoke packaging solutions for retail, e-commerce, and industrials. The company's Biomaterials segment provides various pulp for packaging, paper, tissue, specialties, and hygiene product producers; and tall oil and turpentine from biomass. Its Wood Products segment offers wood-based solutions, including digital tools for design and construction of building projects with wood; applications for windows and doors; and pellets for sustainable heating solutions. The company's Forest segment engages in sustainable forest management, as well as supplies wood. Its Paper segments offers portfolio of products for print and office use. The company's Other segment produces electricity and heat. It serves packaging manufacturers, brand owners, paper merchants, publishers, retailers, printing houses, converters, and construction companies. The company was incorporated in 1996 and is headquartered in Helsinki, Finland.