Reviewing Verso (VRS) & Its Peers

Verso (NYSE: VRS) is one of 22 public companies in the “PAPER” industry, but how does it weigh in compared to its rivals? We will compare Verso to related businesses based on the strength of its valuation, institutional ownership, profitability, analyst recommendations, earnings, risk and dividends.

Analyst Ratings

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This is a summary of recent ratings for Verso and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Verso 0 0 2 0 3.00
Verso Competitors 127 467 528 30 2.40

Verso presently has a consensus price target of $27.00, indicating a potential upside of 55.98%. As a group, “PAPER” companies have a potential upside of 5.37%. Given Verso’s stronger consensus rating and higher possible upside, analysts clearly believe Verso is more favorable than its rivals.

Volatility & Risk

Verso has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Verso’s rivals have a beta of 0.79, indicating that their average share price is 21% less volatile than the S&P 500.

Earnings & Valuation

This table compares Verso and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Verso $2.46 billion -$30.00 million -19.90
Verso Competitors $5.69 billion $1.15 billion 15.07

Verso’s rivals have higher revenue and earnings than Verso. Verso is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Verso and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Verso -1.22% -4.83% -1.61%
Verso Competitors 18.25% 10.77% 3.69%

Institutional and Insider Ownership

82.2% of Verso shares are held by institutional investors. Comparatively, 64.8% of shares of all “PAPER” companies are held by institutional investors. 4.2% of Verso shares are held by insiders. Comparatively, 5.6% of shares of all “PAPER” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Verso rivals beat Verso on 8 of the 13 factors compared.

About Verso

Verso Corporation is a producer of coated papers, which are used in magazines, catalogs, advertising brochures and annual reports, among other media and marketing publications. The Company operates through two segments: paper and pulp. The Paper segment includes paper products, which are used in media and marketing applications, including catalogs, magazines, and commercial printing applications, such as advertising brochures, annual reports and direct-mail advertising. The Pulp segment includes pulp products, which are used to manufacture printing, writing, and specialty paper grades and tissue products. The Company produces a range of products, ranging from coated freesheet and coated groundwood, to inkjet and digital paper, supercalendered papers and uncoated freesheet. It also produces and sells market kraft pulp, which is used to manufacture printing and writing paper grades and tissue products. The Company also produces and sells Northern Bleached Hardwood Kraft (NBHK) pulp.

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