Nine Dragons Paper (OTCMKTS:NDGPF) & Suzano (NYSE:SUZ) Critical Survey

Nine Dragons Paper (OTCMKTS:NDGPFGet Free Report) and Suzano (NYSE:SUZGet Free Report) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a summary of current ratings and recommmendations for Nine Dragons Paper and Suzano, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nine Dragons Paper 0 0 0 0 N/A
Suzano 0 0 1 0 3.00

Earnings and Valuation

This table compares Nine Dragons Paper and Suzano’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nine Dragons Paper N/A N/A N/A $0.38 1.48
Suzano $9.65 billion 1.50 $4.53 billion $3.42 3.12

Suzano has higher revenue and earnings than Nine Dragons Paper. Nine Dragons Paper is trading at a lower price-to-earnings ratio than Suzano, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nine Dragons Paper and Suzano’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nine Dragons Paper N/A N/A N/A
Suzano 47.44% 64.65% 17.21%

Institutional and Insider Ownership

13.8% of Nine Dragons Paper shares are owned by institutional investors. Comparatively, 2.6% of Suzano shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Nine Dragons Paper pays an annual dividend of $0.10 per share and has a dividend yield of 17.8%. Suzano pays an annual dividend of $0.32 per share and has a dividend yield of 3.0%. Nine Dragons Paper pays out 26.4% of its earnings in the form of a dividend. Suzano pays out 9.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Suzano has increased its dividend for 1 consecutive years.

Summary

Suzano beats Nine Dragons Paper on 9 of the 11 factors compared between the two stocks.

About Nine Dragons Paper

(Get Free Report)

Nine Dragons Paper (Holdings) Limited, together with its subsidiaries, produces and sells packaging paper, recycled printing and writing paper, and specialty paper and pulp products in the People's Republic of China. The company offers linerboard products, including kraft, test, white top, and coated linerboards; corrugating medium containerboard products; corrugated cardboard products; carton box products; corrugated sheet products; and coated duplex boards. It also provides recycled printing and writing paper, such as uncoated wood-free paper and office paper; capacitor tissue paper; low and high voltage, ultra-high-voltage transformer coil winding, and heat-resistant insulating paper; and recycled and kraft pulp products. It also operates in Vietnam, Malaysia, and the United States. The company was founded in 1995 and is headquartered in Dongguan, the People's Republic of China. Nine Dragons Paper (Holdings) Limited is a subsidiary of Best Result Holdings Limited.

About Suzano

(Get Free Report)

Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. It operates through Pulp and Paper segments. The company offers coated and uncoated printing and writing papers, paperboards, tissue papers, and market and fluff pulps; and lignin. It also engages in the research, development, and production of biofuel; operation of port terminals; power generation and distribution business; commercialization of equipment and parts; industrialization, commercialization, and exporting of pulp and standing wood; road freight transport; biotechnology research and development; and commercialization of paper and computer materials. In addition, the company is involved in the business office, production packaging, and financial fundraising activities; research, development, production, commercialization, and distribution of wood-based textile fibers, yarns, and filaments produced from cellulose and microfibrillated cellulose; and research and development of wood raw materials for the textile industry. Suzano S.A. 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.

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