Analyzing SU Group (NASDAQ:SUGP) and Magnera (NYSE:MAGN)

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Magnera and SU Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	1	0	2	0	2.33
SU Group	1	0	0	0	1.00

Magnera currently has a consensus target price of $15.50, indicating a potential upside of 10.33%. Given Magnera’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Magnera is more favorable than SU Group.

Valuation & Earnings

This table compares Magnera and SU Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$3.20 billion	0.16	-$159.00 million	($7.64)	-1.84
SU Group	$23.43 million	0.33	$1.37 million	N/A	N/A

SU Group has lower revenue, but higher earnings than Magnera.

Risk and Volatility

Magnera has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500. Comparatively, SU Group has a beta of 2.75, meaning that its share price is 175% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magnera	-4.96%	-14.47%	-3.94%
SU Group	N/A	N/A	N/A

Institutional & Insider Ownership

76.9% of Magnera shares are owned by institutional investors. Comparatively, 68.1% of SU Group shares are owned by institutional investors. 2.3% of Magnera shares are owned 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.

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 SU Group

SU Group Holdings Limited, through its subsidiaries, operates as an integrated security-related services company in Hong Kong and internationally. The company operates through two segments, Security-Related Engineering Services Business; and Security Guarding and Screening Services Business. It primarily provides security-related engineering, security guarding and screening, and related vocational training services. The company also engages in the design, supply, installation, maintenance, and testing and commissioning of various security systems. In addition, it offers threat detection systems, including X-ray machines, trace detection products, metal detectors, and mail screening machines; traffic and pedestrian control systems, such as traffic control system, automatic fare control systems, turnstiles, automatic door system, and people counting systems; and extra-low voltage systems comprising closed-circuit television, access control, public address, and building management systems to commercial properties, public facilities, and residential properties. Further, the company provides screening services, such as the detection of explosives, and incendiary devices in air cargo consignment and detection of dangerous goods through threat detection systems by screeners; and training courses for basic security services, mandatory basic safety, and training revalidation courses. Additionally, it offers equipment leasing services. The company was founded in 1998 and is headquartered in Kwun Tong, Hong Kong. SU Group Holdings Limited operates as a subsidiary of Exceptional Engineering Limited.