Comparing Sugarmade (OTCMKTS:SGMD) & Smurfit Westrock (NYSE:SW)

Smurfit Westrock (NYSE:SW) and Sugarmade (OTCMKTS:SGMD) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Profitability

This table compares Smurfit Westrock and Sugarmade’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Smurfit Westrock	1.98%	7.38%	2.95%
Sugarmade	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for Smurfit Westrock and Sugarmade, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Smurfit Westrock	0	1	9	0	2.90
Sugarmade	0	0	0	0	0.00

Smurfit Westrock currently has a consensus target price of $57.90, indicating a potential upside of 27.49%. Given Smurfit Westrock’s stronger consensus rating and higher possible upside, research analysts plainly believe Smurfit Westrock is more favorable than Sugarmade.

Insider & Institutional Ownership

83.4% of Smurfit Westrock shares are owned by institutional investors. 0.5% of Smurfit Westrock shares are owned by insiders. Comparatively, 5.2% of Sugarmade shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Smurfit Westrock and Sugarmade”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Smurfit Westrock	$21.11 billion	1.12	$319.00 million	$1.22	37.23
Sugarmade	$2.40 million	0.00	-$3.04 million	N/A	N/A

Smurfit Westrock has higher revenue and earnings than Sugarmade.

Volatility and Risk

Smurfit Westrock has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Sugarmade has a beta of 0.07, indicating that its share price is 93% less volatile than the S&P 500.

Summary

Smurfit Westrock beats Sugarmade on 11 of the 12 factors compared between the two stocks.

About Smurfit Westrock

Smurfit Westrock Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland and internationally. The company produces containerboard that it converts into corrugated containers or sells to third parties, as well as produces other types of paper, such as consumer packaging board, sack paper, graphic paper, solid board and graphic board, and other paper-based packaging products, such as consumer packaging, solid board packaging, paper sacks, and other packaging products, including bag-in-box. It also produces linerboard and corrugated medium, paperboard, and non-packaging grades of paper, as well as converted products, such as folding cartons and corrugated boxes, and other products; recycled paper-based packaging products; and packaging machinery. The company primarily serves food and beverage, e-commerce, retail, consumer goods, industrial, and foodservice markets. Smurfit Westrock Plc was founded in 1934 and is headquartered in Dublin, Ireland.

About Sugarmade

Sugarmade, Inc. engages in the paper and paper-based products business in the United States. It operates through three segments: Paper and Paper-Based Products, Non-Medical Supplies, and Cannabis Products Delivery Service and Sales. The company also produces and wholesales custom printed and generic supplies, such as plastic cold cups, paper coffee cups, yogurt cups, ice cream cups, cup lids, cup sleeves, edible packaging, food containers, soup containers, plastic spoons, and other related products to quick-service restaurants. In addition, it offers non-medical personal protective equipment. Further, the company operates the cannabis products delivery and sale services under the BudCars, Lemon Glow, and Nug Avenue brand names. It also offers its products through CarryOutSupplies.com website. Sugarmade, Inc. was founded in 2009 and is based in Monrovia, California.