Sugarmade (OTCMKTS:SGMD) and Veritiv (NYSE:VRTV) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
Valuation and Earnings
This table compares Sugarmade and Veritiv’s revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Sugarmade has higher earnings, but lower revenue than Veritiv.
This is a summary of current recommendations and price targets for Sugarmade and Veritiv, as provided by MarketBeat.com.
||Strong Buy Ratings
Veritiv has a consensus target price of $35.60, suggesting a potential downside of 0.81%. Given Veritiv’s higher possible upside, analysts plainly believe Veritiv is more favorable than Sugarmade.
Risk & Volatility
Sugarmade has a beta of -4.43, indicating that its stock price is 543% less volatile than the S&P 500. Comparatively, Veritiv has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.
Insider and Institutional Ownership
95.2% of Veritiv shares are held by institutional investors. 5.2% of Sugarmade shares are held by company insiders. Comparatively, 0.8% of Veritiv shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Sugarmade and Veritiv’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Veritiv beats Sugarmade on 8 of the 11 factors compared between the two stocks.
Sugarmade Company Profile
Sugarmade, Inc. provides paper products derived from non-wood sources. The company produces and wholesales custom printed and generic supplies, including double poly paper, disposable, clear, plastic cold, paper coffee, yogurt, and ice cream cups, as well as cup lids, cup sleeves, food containers, soup containers, plastic spoons, and other products for quick service restaurant industry. It also engages in the manufacturing and distribution of various technologies and products, such as soil containing grow bags used in greenhouses, odor-resistant storage and transport products, lights to enhanced indoor cultivation, and other products that support the legal cultivation and processing of cannabis and other agricultural products through caligrownsupplies.com Website to distributors and retailers. In addition, the company distributes paper made from reclaimed sugarcane fiber; and offers Sriracha Seasoning Stix and Seasoning Stix blends through SrirachaStix.com Web platform. Sugarmade, Inc. was founded in 2009 and is headquartered in City of Industry, California.
Veritiv Company Profile
Veritiv Corporation operates as a business-to-business distributor of packaging, facility solutions, print, and publishing products and services in the United States, Canada, and internationally. It operates through four segments: Packaging, Facility Solutions, Print, and Publishing. The Packaging segment offers standard and custom 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. The Print segment sells and distributes commercial printing, writing, copying, digital, wide format, and specialty paper products; and graphics consumables and equipment. It also provides customized paper conversion services of commercial printing paper for distribution to document centers and form printers. The Publishing segment sells and distributes coated and uncoated commercial printing papers to publishers, retailers, converters, printers, and specialty businesses for use in magazines, catalogs, books, directories, gaming, couponing, retail inserts, and direct mail. This segment also provides print management, procurement, and supply chain management solutions. The company also offers logistics and supply chain management solutions. It offers its products under the Endurance, nordic+, Econosource, Comet, Starbrite Opaque Select, TUFflex, Reliable, and Spring Grove brands, as well as other brands to printers, publishers, data centers, manufacturers, higher education institutions, healthcare facilities, sporting and performance arenas, retail stores, government agencies, property managers, and building service contractors. As of March 1, 2018, the company operated 170 distribution centers. Veritiv Corporation was incorporated in 2013 and is based in Atlanta, Georgia.
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