Financial Comparison: Chiyoda (OTCMKTS:CHYCY) vs. Magnera (NYSE:MAGN)

Magnera (NYSE:MAGN) and Chiyoda (OTCMKTS:CHYCY) are both small-cap construction companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Profitability

This table compares Magnera and Chiyoda’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnera	-6.06%	-10.88%	-4.00%
Chiyoda	5.94%	153.64%	6.16%

Institutional and Insider Ownership

76.9% of Magnera shares are held by institutional investors. 2.3% of Magnera shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Magnera has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500. Comparatively, Chiyoda has a beta of -0.07, indicating that its share price is 107% less volatile than the S&P 500.

Earnings & Valuation

This table compares Magnera and Chiyoda”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$332.10 million	1.32	-$15.25 million	($11.94)	-1.03
Chiyoda	$3.00 billion	0.17	$178.11 million	$0.28	6.96

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

Analyst Ratings

This is a summary of recent recommendations for Magnera and Chiyoda, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	0	2	0	0	2.00
Chiyoda	0	0	0	0	0.00

Magnera currently has a consensus target price of $17.50, suggesting a potential upside of 41.93%. Given Magnera’s stronger consensus rating and higher probable upside, equities analysts clearly believe Magnera is more favorable than Chiyoda.

Summary

Chiyoda beats Magnera on 7 of the 13 factors compared between the two stocks.

About Magnera

Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions propel our customers’ goals forward and solve end-users’ problems, every day.

About Chiyoda

Chiyoda Corporation engages in the integrated engineering business in Japan and internationally. It offers consulting, planning, engineering, procurement, construction, commissioning, and maintenance services for facilities related to gas, electricity, petroleum, petrochemical, chemical, pharmaceutical, antipollution, environment, preservation, and others. The company also explores for oil, gas, and other mineral resources, as well as invests in and finances exploration activities. Chiyoda Corporation was incorporated in 1948 and is headquartered in Yokohama, Japan.