Head-To-Head Comparison: Mercer International (NASDAQ:MERC) & Millennium Group International (NASDAQ:MGIH)

Millennium Group International (NASDAQ:MGIH) and Mercer International (NASDAQ:MERC) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Profitability

This table compares Millennium Group International and Mercer International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Millennium Group International	N/A	N/A	N/A
Mercer International	-4.55%	-12.07%	-2.36%

Analyst Recommendations

This is a breakdown of current recommendations for Millennium Group International and Mercer International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millennium Group International	0	0	0	0	0.00
Mercer International	0	4	0	0	2.00

Mercer International has a consensus price target of $4.75, suggesting a potential upside of 29.43%. Given Mercer International’s stronger consensus rating and higher possible upside, analysts plainly believe Mercer International is more favorable than Millennium Group International.

Risk and Volatility

Millennium Group International has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Mercer International has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500.

Valuation and Earnings

This table compares Millennium Group International and Mercer International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Millennium Group International	$38.53 million	N/A	-$8.77 million	N/A	N/A
Mercer International	$2.04 billion	0.12	-$85.14 million	($1.35)	-2.72

Millennium Group International has higher earnings, but lower revenue than Mercer International.

Insider & Institutional Ownership

0.3% of Millennium Group International shares are held by institutional investors. Comparatively, 85.8% of Mercer International shares are held by institutional investors. 1.0% of Mercer International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Mercer International beats Millennium Group International on 6 of the 10 factors compared between the two stocks.

About Millennium Group International

Millennium Group International Holdings Limited, an investment holding company, provides paper-based packaging solutions in Mainland China, Hong Kong, Vietnam, rest of Southeast Asian countries, Australia, the United States, and internationally. The company offers paper packaging products, including cardboard boxes, gift boxes, displays, corrugated outer cartons, manuals, and user guides to footwear products, sportswear, cookware and kitchenware, smartphones, food and beverage, paper and packaging, non-food-and-beverage-consumables, logistics, e-commerce, and home electronics industries; and packaging solutions to various luxury products industries. It also provides packaging products supply chain management solutions, and board games and various board game accessories. The company was founded in 1978 and is headquartered in Kwun Tong, Hong Kong. Millennium Group International Holdings Limited operates as a subsidiary of YC 1926 (BVI) Limited.

About Mercer International

Mercer International Inc., together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) and northern bleached hardwood kraft (NBHK) pulp worldwide. The company operates through two segments, Pulp and Solid Wood. It manufactures, sells, and distributes pulp, electricity, and chemicals through pulp mills. The company also manufactures, distributes, and sells lumber, cross-laminated timber, finger joint lumber, glue-laminated timber, wood pallets, electricity, biofuels, and wood residuals. In addition, it generates and sells green energy produced from biomass cogeneration power plant to third party. Further, it produces and sells NBSK pulp manufactured from softwood; green energy using carbon-neutral biofuels, such as black liquor and wood waste; tall oil from black liquor for use as a chemical additive and green energy source; bio extractives and biomaterials, including lignin, turpentine, cellulose filaments, and sandalwood oil; and biofuels; as well as provides transportation and logistics services. The company sells its pulp to pulp markets, integrated paper and paperboard manufacturers; and lumber products to distributors, construction firms, secondary manufacturers, retail yards, and home centers. Mercer International Inc. was founded in 1968 and is headquartered in Vancouver, Canada.