Critical Review: Green Plains (NASDAQ:GPRE) versus Mativ (NYSE:MATV)

Mativ (NYSE:MATVGet Free Report) and Green Plains (NASDAQ:GPREGet Free Report) are both small-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Profitability

This table compares Mativ and Green Plains’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mativ -22.03% 7.06% 1.73%
Green Plains -8.37% -16.78% -8.14%

Earnings and Valuation

This table compares Mativ and Green Plains”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mativ $1.98 billion 0.34 -$48.70 million ($8.03) -1.52
Green Plains $2.46 billion 0.28 -$82.50 million ($2.92) -3.37

Mativ has higher earnings, but lower revenue than Green Plains. Green Plains is trading at a lower price-to-earnings ratio than Mativ, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

95.0% of Mativ shares are held by institutional investors. 1.0% of Mativ shares are held by insiders. Comparatively, 1.0% of Green Plains shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Mativ and Green Plains, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mativ 1 1 1 0 2.00
Green Plains 2 5 3 1 2.27

Mativ presently has a consensus target price of $10.00, indicating a potential downside of 18.27%. Green Plains has a consensus target price of $10.00, indicating a potential upside of 1.52%. Given Green Plains’ stronger consensus rating and higher possible upside, analysts plainly believe Green Plains is more favorable than Mativ.

Volatility and Risk

Mativ has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, Green Plains has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Summary

Green Plains beats Mativ on 9 of the 15 factors compared between the two stocks.

About Mativ

(Get Free Report)

Mativ Holdings, Inc., together with its subsidiaries, manufactures and sells specialty materials in the United States, Europe, the Asia Pacific, the Americas, and internationally. The company operates through two segments, Advanced Technical Materials and Fiber-Based Solutions. The Advanced Technical Materials manufactures and sells various engineered polymer, resin and fiber-based substrates, nets, films, adhesive tapes, and other nonwovens for the filtration, protective solutions, release liners, and healthcare end-markets. This segment sells its products directly, as well as through sales agents and distributors. The Fiber-Based Solutions segment produces packaging and specialty paper products. This segment provides premium packaging products that are used for wine, spirits and beer labels, folding cartons, box wrap, bags, hang tags, and stored value cards servicing retail, cosmetics, spirits, and electronics end-use markets; and premium papers, which are used in commercial printing services, advertising collateral, stationery, corporate identity packages and brochures, direct mail, business cards, and other uses. It also offers branded paper-based products for the consumer channel, such as bright papers, cardstock, stationery paper, envelopes, journals, and planners. This segment distributes its products through authorized paper distributors, converters, retailers, and specialty business converters, as well as directly to end-users. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.

About Green Plains

(Get Free Report)

Green Plains Inc. produces low-carbon fuels in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces ethanol, distillers grains, and ultra-high protein and renewable corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling and storage, commodity marketing business; and trading of ethanol, distiller grains, renewable corn oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services. It operates 24 ethanol storage facilities; two fuel terminal facilities; and a fleet of approximately 2,180 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was incorporated in 2004 and is headquartered in Omaha, Nebraska.

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