Stora Enso Oyj (OTCMKTS:SEOAY) & Sugarmade (OTCMKTS:SGMD) Financial Analysis

Stora Enso Oyj (OTCMKTS:SEOAY) and Sugarmade (OTCMKTS:SGMD) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Profitability

This table compares Stora Enso Oyj and Sugarmade’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stora Enso Oyj	-1.18%	-3.89%	-1.99%
Sugarmade	N/A	N/A	N/A

Insider & Institutional Ownership

0.0% of Stora Enso Oyj shares are held by institutional investors. 8.1% of Stora Enso Oyj shares are held by insiders. Comparatively, 5.2% of Sugarmade shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Stora Enso Oyj and Sugarmade”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stora Enso Oyj	$9.79 billion	0.84	-$146.08 million	($0.16)	-65.31
Sugarmade	$2.40 million	0.00	-$3.04 million	N/A	N/A

Sugarmade has lower revenue, but higher earnings than Stora Enso Oyj.

Analyst Ratings

This is a summary of current ratings and recommmendations for Stora Enso Oyj and Sugarmade, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stora Enso Oyj	2	0	0	0	1.00
Sugarmade	0	0	0	0	0.00

Given Sugarmade’s higher possible upside, analysts plainly believe Sugarmade is more favorable than Stora Enso Oyj.

Volatility and Risk

Stora Enso Oyj has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Sugarmade has a beta of 0.21, indicating that its share price is 79% less volatile than the S&P 500.

About Stora Enso Oyj

Stora Enso Oyj provides renewable solutions for the packaging, biomaterials, wooden constructions, and paper industries in Finland and internationally. It operates through Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, Paper, and Other segments. The company's Packaging Materials segment offers virgin and recycled fiber replace fossil-based materials with low-carbon, renewable and recyclable packaging materials for food and beverage, pharmaceutical, and transport packaging. Its Packaging Solutions segment develops and sells fiber-based packaging products and services, including converting corrugated boards and carton boards; and new materials, such as formed fiber and wood foams into standard and bespoke packaging solutions for retail, e-commerce, and industrials. The company's Biomaterials segment provides various pulp for packaging, paper, tissue, specialties, and hygiene product producers; and tall oil and turpentine from biomass. Its Wood Products segment offers wood-based solutions, including digital tools for design and construction of building projects with wood; applications for windows and doors; and pellets for sustainable heating solutions. The company's Forest segment engages in sustainable forest management, as well as supplies wood. Its Paper segments offers portfolio of products for print and office use. The company's Other segment produces electricity and heat. It serves packaging manufacturers, brand owners, paper merchants, publishers, retailers, printing houses, converters, and construction companies. The company was incorporated in 1996 and is headquartered in Helsinki, Finland.

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.