Critical Survey: Lee & Man Paper Manufacturing (OTCMKTS:LMPMY) versus Clearwater Paper (NYSE:CLW)

Clearwater Paper (NYSE:CLWGet Free Report) and Lee & Man Paper Manufacturing (OTCMKTS:LMPMYGet Free Report) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, risk, institutional ownership, valuation, earnings and analyst recommendations.

Valuation and Earnings

This table compares Clearwater Paper and Lee & Man Paper Manufacturing’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Clearwater Paper $2.08 billion 0.27 $46.10 million $3.13 10.48
Lee & Man Paper Manufacturing N/A N/A N/A $4.02 0.85

Clearwater Paper has higher revenue and earnings than Lee & Man Paper Manufacturing. Lee & Man Paper Manufacturing is trading at a lower price-to-earnings ratio than Clearwater Paper, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

89.0% of Clearwater Paper shares are held by institutional investors. Comparatively, 0.0% of Lee & Man Paper Manufacturing shares are held by institutional investors. 2.3% of Clearwater Paper shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Clearwater Paper and Lee & Man Paper Manufacturing, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clearwater Paper 0 0 2 0 3.00
Lee & Man Paper Manufacturing 0 0 0 0 N/A

Clearwater Paper currently has a consensus target price of $47.00, indicating a potential upside of 43.25%. Given Clearwater Paper’s higher probable upside, analysts plainly believe Clearwater Paper is more favorable than Lee & Man Paper Manufacturing.

Profitability

This table compares Clearwater Paper and Lee & Man Paper Manufacturing’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clearwater Paper 2.51% 12.27% 4.11%
Lee & Man Paper Manufacturing N/A N/A N/A

Summary

Clearwater Paper beats Lee & Man Paper Manufacturing on 9 of the 10 factors compared between the two stocks.

About Clearwater Paper

(Get Free Report)

Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through two segments, Pulp and Paperboard, and Consumer Products. The Pulp and Paperboard segment manufactures and markets bleached paperboard; Solid Bleached Sulfate paperboard that is used to produce folding cartons, liquid packaging, cups and plates, blister and carded packaging, and top sheet and commercial printing items; and hardwood and softwood pulp, as well as offers services that include custom sheeting, slitting, and cutting. It sells its products to packaging converters, folding carton converters, merchants, and commercial printers. The Consumer Products segment provides a line of at-home tissue products, including bath tissues, paper towels, facial tissues, and napkins; recycled fiber value grade products; and away-from-home tissues. This segment sells its products to retailers and wholesale distributors, including grocery, club, mass merchants, and discount stores. Clearwater Paper Corporation was founded in 1900 and is based in Spokane, Washington.

About Lee & Man Paper Manufacturing

(Get Free Report)

Lee & Man Paper Manufacturing Limited, an investment holding company, manufactures and trades in packaging papers, pulps, and tissue papers in the People's Republic of China, Vietnam, Malaysia, Macau, and Hong Kong. The company operates through Packaging Paper, Tissue Paper, and Pulp segments. It offers various pulp products, such as dissolved pulps for use in viscose chemical fibers, bamboo fibers, glass papers, acetate fibers, refined rayons, etc.; unbleached bamboo kraft pulps for use in ecru life papers, environmental table wares, food bags, etc.; and bleached bamboo kraft pulps for use in tissue papers, fine papers, cigarette papers, cup papers, etc. The company also provides containerboard products, including kraft and test linerboards for use in cartons, paper bags, file boxes, paperboards, wall papers, etc.; and corrugating liners for use in corrugated layer and septi-layer of paperboards, and honeycomb-like products. In addition, it offers white lined chipboards and environment friendly white linerboard coated products for use in graphic cartons, color card printing, and offset printing, as well as in packaging of commodities, household appliances, IT products, medicine/health care products, food products, toys, gifts, ceramic products, stationery products, beverages, etc.; toilet rolls for wiping and cleaning of hands, faces, food, etc.; and unbleached paper for use in various applications, such as baby care, menstruation, facial, sensitive skin, table, kitchen, etc. The company was founded in 1994 and is headquartered in North Point, Hong Kong.

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