Veritiv (NYSE: VRTV) and Verso (NYSE:VRS) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
Valuation and Earnings
This table compares Veritiv and Verso’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Veritiv||$8.36 billion||0.07||-$13.30 million||($0.85)||-46.12|
|Verso||$2.46 billion||0.24||-$30.00 million||($0.75)||-22.45|
Risk and Volatility
Veritiv has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Verso has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Veritiv and Verso, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Veritiv presently has a consensus price target of $34.67, indicating a potential downside of 11.56%. Verso has a consensus price target of $27.00, indicating a potential upside of 60.33%. Given Verso’s stronger consensus rating and higher probable upside, analysts plainly believe Verso is more favorable than Veritiv.
Insider & Institutional Ownership
94.3% of Veritiv shares are owned by institutional investors. Comparatively, 82.2% of Verso shares are owned by institutional investors. 0.8% of Veritiv shares are owned by company insiders. Comparatively, 4.2% of Verso shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Veritiv and Verso’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Veritiv Company Profile
Veritiv Corporation is a business-to-business distributor of print, publishing, packaging and facility solutions. The Company also provides logistics and supply chain management solutions to its customers. The Company’s segments are Print, Publishing & Print Management (Publishing), Packaging, Facility Solutions, and Corporate & Other. The Print segment sells and distributes commercial printing, writing, copying, digital, wide format and specialty paper products, graphics consumables and graphics equipment. The Publishing segment sells and distributes coated and uncoated commercial printing papers. The Packaging segment provides standard, as well as custom and 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.
Verso Company Profile
Verso Corporation is a producer of coated papers, which are used in magazines, catalogs, advertising brochures and annual reports, among other media and marketing publications. The Company operates through two segments: paper and pulp. The Paper segment includes paper products, which are used in media and marketing applications, including catalogs, magazines, and commercial printing applications, such as advertising brochures, annual reports and direct-mail advertising. The Pulp segment includes pulp products, which are used to manufacture printing, writing, and specialty paper grades and tissue products. The Company produces a range of products, ranging from coated freesheet and coated groundwood, to inkjet and digital paper, supercalendered papers and uncoated freesheet. It also produces and sells market kraft pulp, which is used to manufacture printing and writing paper grades and tissue products. The Company also produces and sells Northern Bleached Hardwood Kraft (NBHK) pulp.
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