Reviewing International Paper (NYSE:IP) & Sugarmade (OTCMKTS:SGMD)

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for International Paper and Sugarmade, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Paper	3	3	6	0	2.25
Sugarmade	0	0	0	0	0.00

International Paper presently has a consensus target price of $55.58, indicating a potential upside of 21.27%. Given International Paper’s stronger consensus rating and higher probable upside, research analysts clearly believe International Paper is more favorable than Sugarmade.

Valuation and Earnings

This table compares International Paper and Sugarmade”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Paper	$18.62 billion	1.30	$557.00 million	($0.10)	-458.30
Sugarmade	$2.40 million	0.00	-$3.04 million	N/A	N/A

International Paper has higher revenue and earnings than Sugarmade.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International Paper	-0.12%	2.63%	1.09%
Sugarmade	N/A	N/A	N/A

Volatility & Risk

International Paper has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Sugarmade has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Insider and Institutional Ownership

82.0% of International Paper shares are held by institutional investors. 0.4% of International Paper shares are held by company insiders. Comparatively, 5.2% of Sugarmade shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

International Paper beats Sugarmade on 10 of the 12 factors compared between the two stocks.

About International Paper

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.

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.