Head to Head Comparison: Supremex (OTCMKTS:SUMXF) & Clearwater Paper (NYSE:CLW)

Supremex (OTCMKTS:SUMXF) and Clearwater Paper (NYSE:CLW) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, earnings, valuation and dividends.

Profitability

This table compares Supremex and Clearwater Paper’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Supremex	N/A	N/A	N/A
Clearwater Paper	-3.24%	-7.95%	-4.06%

Earnings and Valuation

This table compares Supremex and Clearwater Paper”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Supremex	N/A	N/A	N/A	$0.38	6.71
Clearwater Paper	$1.56 billion	0.22	-$18.60 million	($3.04)	-6.85

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Supremex and Clearwater Paper, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Supremex	0	0	0	0	0.00
Clearwater Paper	1	5	2	0	2.12

Clearwater Paper has a consensus price target of $18.50, suggesting a potential downside of 11.19%. Given Clearwater Paper’s stronger consensus rating and higher probable upside, analysts clearly believe Clearwater Paper is more favorable than Supremex.

Institutional and Insider Ownership

72.6% of Supremex shares are owned by institutional investors. Comparatively, 90.0% of Clearwater Paper shares are owned by institutional investors. 2.4% of Clearwater Paper shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Clearwater Paper beats Supremex on 6 of the 11 factors compared between the two stocks.

About Supremex

Supremex Inc. engages in the manufacture and markets envelopes, and paper-based packaging solutions and specialty products to corporations, resellers, government entities, small and medium sized enterprises, direct mailers, and solutions providers primarily in Canada and the United States. The company offers a range of stock and custom envelopes in various styles, shapes, and colors; and e-Commerce fulfillment packaging solutions; labels; polyethylene bags for courier applications; and bubble mailers. It also provides commercial printing services, including printing, packaging and displays, finishing, and large format services. The company serves various industries, including pharmaceutical, wine and spirits, personal care and beauty, packaging, ecommerce, nutraceutical, food and beverage, apparel, fulfillment, presentation, and display and promotional print and packaging industries. Supremex Inc. was founded in 1977 and is based in Lasalle, Canada.

About Clearwater Paper

Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through Pulp and Paperboard, and Consumer Products segments. The Pulp and Paperboard segment manufactures and markets bleached paperboard; Solid Bleached Sulfate paperboard that is used to produce folding cartons, liquid packaging, cups and plates, blister and carded packaging, and top sheet and commercial printing items; and hardwood and softwood pulp, as well as offers services that include custom sheeting, slitting, and cutting. It sells its products to carton converters, folding carton converters, merchants, and commercial printers. The Consumer Products segment provides a line of at-home tissue products, including bath tissues, paper towels, facial tissues, and napkins; recycled fiber value grade products; and away-from-home tissues. This segment sells its products to retailers, including grocery, club, mass merchants, and discount stores. The company was incorporated in 2005 and is based in Spokane, Washington.