Domtar (NYSE:UFS) and BPM (OTCMKTS:BPMI) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Volatility & Risk
Domtar has a beta of 1.9, indicating that its share price is 90% more volatile than the S&P 500. Comparatively, BPM has a beta of 6.52, indicating that its share price is 552% more volatile than the S&P 500.
This table compares Domtar and BPM’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Domtar||$5.22 billion||0.28||$84.00 million||$3.00||8.92|
Domtar has higher revenue and earnings than BPM.
Insider and Institutional Ownership
91.5% of Domtar shares are owned by institutional investors. 1.4% of Domtar shares are owned by insiders. Comparatively, 9.7% of BPM shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Domtar and BPM’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Domtar and BPM, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Domtar currently has a consensus target price of $29.70, indicating a potential upside of 10.95%. Given Domtar’s higher possible upside, equities analysts clearly believe Domtar is more favorable than BPM.
Domtar beats BPM on 7 of the 9 factors compared between the two stocks.
Domtar Company Profile
Domtar Corporation designs, manufactures, markets, and distributes various communication papers, specialty and packaging papers, and absorbent hygiene products in the United States, Canada, Europe, Asia, and internationally. It operates in two segments, Pulp and Paper, and Personal Care. The company offers business papers, including copy and electronic imaging papers for use with inkjet and laser printers, photocopiers, and plain-paper fax machines, as well as computer papers, preprinted forms, and digital papers for office and home use. It also provides commercial printing and publishing papers, such as offset papers and opaques for sheet and roll fed offset presses; publishing papers comprising tradebook and lightweight uncoated papers for publishing textbooks, dictionaries, catalogs, magazines, hard cover novels, and financial documents; and base papers that are converted into envelopes, tablets, business forms, and data processing/computer forms. In addition, the company offers papers for thermal and flexible packaging, food and medical packaging, medical gowns and drapes, sandpaper backing, carbonless printing, label, and other coating and laminating applications; and papers for industrial and specialty applications that include carrier and treated papers, security papers, and specialized printing and converting applications. Further, it provides softwood, fluff, and hardwood Kraft products for various end products. Additionally, the company offers absorbent hygiene products, which comprise adult incontinence products under the Attends, IncoPack, Indasec, and Reassure brand; and branded and private label briefs, protective underwear, underpads, pads, and washcloths, as well as baby diapers, youth pants, and infant training pants for healthcare, retail, and direct-to-consumer channels. It serves merchants, retail outlets, stationers, printers, publishers, converters, and end-users. The company was founded in 1848 and is based in Fort Mill, South Carolina.
BPM Company Profile
BPM Inc. manufactures machine glazed papers for confectionery and candy wrap, dairy, meat, poultry, bakery, and food wraps markets. The company offers converted materials; custom web, toll printing, converting, and rewinding services; and post-consumer recycled fine papers for commercial printing, offices, schools, and business applications. It also provides uncoated fine papers; flexible packaging papers; wet waxed papers; and interleaver papers, taffy wraps, overwraps, and confectionery wraps. The company was founded in 1929 and is based in Peshtigo, Wisconsin.
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