Reviewing Suzano (NYSE:SUZ) and Verso (NYSE:VRS)

Suzano (NYSE:SUZ) and Verso (NYSE:VRS) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Institutional and Insider Ownership

1.0% of Suzano shares are held by institutional investors. Comparatively, 93.5% of Verso shares are held by institutional investors. 0.5% of Verso shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Suzano and Verso, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Suzano 0 1 0 0 2.00
Verso 0 1 1 0 2.50

Verso has a consensus target price of $33.75, indicating a potential upside of 228.63%. Given Verso’s stronger consensus rating and higher probable upside, analysts clearly believe Verso is more favorable than Suzano.

Profitability

This table compares Suzano and Verso’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Suzano 4.42% 5.44% 1.17%
Verso 3.64% 18.97% 9.75%

Valuation & Earnings

This table compares Suzano and Verso’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Suzano $3.68 billion 2.26 $87.47 million N/A N/A
Verso $2.68 billion 0.13 $171.00 million $3.70 2.78

Verso has lower revenue, but higher earnings than Suzano.

Dividends

Suzano pays an annual dividend of $0.21 per share and has a dividend yield of 1.4%. Verso does not pay a dividend.

Summary

Verso beats Suzano on 8 of the 12 factors compared between the two stocks.

Suzano Company Profile

Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. The company offers coated and uncoated printing and writing papers, paperboards, tissue paper, market pulp, and fluff pulp; and lignin and its byproducts. It also engages in the plant genetic research and development for forestry, biopower, and biofuel industries. In addition, the company owns a hydroelectric plant located in the cities of Carlos Chagas and Pavão. Further, it operates a forestry base of approximately 1.2 million hectares comprising 520,000 hectares of planted forests in the states of Bahia, Espírito Santo, São Paulo, Minas Gerais, Maranhão, Tocantins, Pará, and Piauí, as well as approximately 488,000 hectares of preservation areas. The company was formerly known as Suzano Papel e Celulose S.A. and changed its name to Suzano S.A. in April 2019. The company was founded in 1924 and is headquartered in Salvador, Brazil. Suzano S.A. is a subsidiary of Suzano Holding S.A.

Verso Company Profile

Verso Corporation produces and sells coated papers in North America. It operates through two segments, Paper and Pulp. The company offers coated freesheet and coated groundwood, specialty, packaging, inkjet and digital, supercalendered, and uncoated freesheet papers; and bleached and unbleached market kraft pulp to manufacture printing, writing, and tissue products. Its paper products are used primarily in media and marketing applications, including catalogs, magazines, and commercial printing applications, such as high-end advertising brochures, annual reports, and direct-mail advertising; and specialty applications comprising flexible packaging, and label and converting. The company was formerly known as Verso Paper Corp. and changed its name to Verso Corporation in January 2015. Verso Corporation was founded in 2006 and is headquartered in Miamisburg, Ohio.

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