Comparing Cascades (CADNF) and Sappi (SPPJY)

Cascades (OTCMKTS:CADNF) and Sappi (OTCMKTS:SPPJY) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Cascades and Sappi, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cascades 1 1 3 0 2.40
Sappi 0 0 1 0 3.00

Earnings and Valuation

This table compares Cascades and Sappi’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cascades N/A N/A N/A N/A N/A
Sappi $5.81 billion 0.45 $323.00 million $0.60 8.08

Sappi has higher revenue and earnings than Cascades.

Profitability

This table compares Cascades and Sappi’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cascades N/A N/A N/A
Sappi 5.79% 17.75% 6.03%

Insider & Institutional Ownership

0.0% of Sappi shares are held by institutional investors. 0.7% of Sappi shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Sappi pays an annual dividend of $0.14 per share and has a dividend yield of 2.9%. Cascades does not pay a dividend. Sappi pays out 23.3% of its earnings in the form of a dividend.

Summary

Sappi beats Cascades on 8 of the 10 factors compared between the two stocks.

About Cascades

Cascades Inc. produces, converts, and markets packaging and tissue products in Canada, the United States, and internationally. The company operates through four segments: Containerboard, Boxboard Europe, Specialty Products, and Tissue Papers. It offers containerboards, and coated recycled and virgin boxboards, as well as converts corrugated products. The company also provides roll headers; wrappers; packaging reams; laminated paperboards for food packaging and furniture backing industries; specialty containers; honeycomb paperboards; uncoated paperboard partitions for the beer, wine, and spirits industry; uncoated recycled paperboards for use in packaging converters and industrial users of headers and wrappers for the paper industry, as well as partitions used as protective packaging; and backing for vinyl flooring. In addition, it provides egg filler flats for egg processors and four-cup carriers for the quick-service restaurant industry; polystyrene foam trays under the EVOK brand for processors and retailers in the food industry, as well as plate and bowls; rigid plastic packaging products under the Ultratill and Poultray brands for food processors and retailers; and flexible films for frozen foods, bakery, and ice industries. Further, the company offers services to recover and process discarded materials for the municipal, industrial, commercial, and institutional sectors. Additionally, it offers bathroom and facial tissues, paper towels, paper hand towels and napkins, parent rolls, industrial wipes, and other products under the Decor, North River, Cascades, Cascades Moka, Tandem, Tandem+, Cascades Elite, Wiping Solutions, Cascades PRO Signature, Cascades PRO Perform, Cascades PRO Select, Cascades Pro Tandem, Cascades PRO Tuff-Job, Cascades Fluff, Cascades Tuff, April Soft, and Nature's Choice labels. The company sells its products through sales force and external representatives. Cascades Inc. was founded in 1964 and is headquartered in Kingsey Falls, Canada.

About Sappi

Sappi Limited, a woodfibre company, manufactures and sells dissolving wood pulp, specialties and packaging papers, and graphic/printing papers to direct and indirect customers in North America, Europe, Southern Africa, and internationally. The company offers dissolving wood pulp products that are used by converters to create viscose fiber for clothing and textiles, acetate tow, and pharmaceutical products, as well as a range of consumer products. It also provides packaging and specialty papers, which are used in the manufacture of soup sachets, luxury carry bags, cosmetic and confectionery packaging, boxes for agricultural products for export, and tissue wadding for household tissue products, as well as casting and release papers for the fashion, textiles, automobile, and household industries. In addition, the company offers graphic paper products that are used by printers in the production of books, brochures, magazines, catalogues, direct mail, newspapers, and various other print applications; and newsprint, uncoated graphic, and business papers. Further, it develops and processes biomaterials and biochemicals; offers sawn timber for construction and furniture manufacturing purposes; and produces and sells green electricity through a network of 5 hydro, 2 gas, and 31 steam turbines that generate approximately 800MW renewable power on 14 sites across 7 countries, as well as produces biogas. The company was formerly known as South African Pulp and Paper Industries Limited and changed its name to Sappi Limited in 1973. Sappi Limited was founded in 1936 and is headquartered in Johannesburg, South Africa.

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