Critical Analysis: Magnera (NYSE:MAGN) and Infinya (OTCMKTS:HAIPF)

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

Profitability

This table compares Infinya and Magnera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Infinya	N/A	N/A	N/A
Magnera	-5.08%	-17.71%	-2.59%

Insider and Institutional Ownership

76.9% of Magnera shares are owned by institutional investors. 11.5% of Infinya shares are owned by company insiders. Comparatively, 2.3% of Magnera shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Infinya and Magnera”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Infinya	N/A	N/A	N/A	N/A	N/A
Magnera	$1.39 billion	0.05	-$79.05 million	($19.12)	-1.06

Infinya has higher earnings, but lower revenue than Magnera.

Analyst Ratings

This is a summary of current ratings and target prices for Infinya and Magnera, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Infinya	0	0	0	0	0.00
Magnera	0	0	1	0	3.00

Magnera has a consensus price target of $22.00, indicating a potential upside of 9.07%. Given Magnera’s stronger consensus rating and higher probable upside, analysts clearly believe Magnera is more favorable than Infinya.

Volatility and Risk

Infinya has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Magnera has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

Summary

Magnera beats Infinya on 6 of the 10 factors compared between the two stocks.

About Infinya

Infinya Ltd. engages in the manufacture and marketing of writing and printing paper, packaging cartons, and in the collection and processing of waste paper. It operates through the following segments: Recycling, Paper Rolls for Carton, Carton Packaging. The Recycling segment engages in the processing and recycling of waste paper, waste carton, and plastic. The Paper Rolls for Carton segment engages in the sale of recycled paper rolls for cartons to companies engaging in the manufacture of carton packages. The Carton Packaging segment engages in the sale of carton packaging products for consumer goods. The company was founded in 1951, and is headquartered in Hadera, Israel.

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.