Contrasting Sugarmade (OTCMKTS:SGMD) & Sappi (OTCMKTS:SPPJY)

Sugarmade (OTCMKTS:SGMD) and Sappi (OTCMKTS:SPPJY) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sugarmade	$2.40 million	0.01	-$3.04 million	N/A	N/A
Sappi	$5.46 billion	0.16	$33.00 million	$0.17	9.41

Sappi has higher revenue and earnings than Sugarmade.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sugarmade	N/A	N/A	N/A
Sappi	1.75%	6.09%	2.56%

Risk & Volatility

Sugarmade has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, Sappi has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sugarmade	0	0	0	0	0.00
Sappi	1	0	0	0	1.00

Summary

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

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.

About Sappi

Sappi Limited, together with its subsidiaries, engages in the provision of materials made from woodfiber-based renewable resources in Europe, North America, and South Africa. The company manufacture and sells dissolving pulp, and wood and paper pulp; graphic papers, coated and uncoated papers, and casting and release papers; and packaging and specialty papers, including packaging and specialty papers, including flexible packaging papers, label papers, functional paper packaging products, containerboards, paperboards, silicone base papers, and dye sublimation papers. It also provides biomaterials, such as valida, lignin, furfural, and sweeteners, as well as forestry products; and engages in the treasury and insurance business. The company was founded in 1936 and is headquartered in Johannesburg, South Africa.