Financial Review: Millennium Group International (NASDAQ:MGIH) versus Sappi (OTCMKTS:SPPJY)

Millennium Group International (NASDAQ:MGIH) and Sappi (OTCMKTS:SPPJY) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Millennium Group International and Sappi”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Millennium Group International	$38.53 million	N/A	-$8.77 million	N/A	N/A
Sappi	$5.46 billion	0.15	$33.00 million	$0.17	8.59

Sappi has higher revenue and earnings than Millennium Group International.

Insider and Institutional Ownership

0.3% of Millennium Group International shares are held by institutional investors. 0.7% of Sappi shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Millennium Group International and Sappi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Millennium Group International	N/A	N/A	N/A
Sappi	1.75%	6.12%	2.53%

Analyst Ratings

This is a summary of recent ratings and target prices for Millennium Group International and Sappi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Millennium Group International	0	0	0	0	0.00
Sappi	1	0	0	0	1.00

Volatility & Risk

Millennium Group International has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Sappi has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Summary

Sappi beats Millennium Group International on 8 of the 9 factors compared between the two stocks.

About Millennium Group International

Millennium Group International Holdings Limited, an investment holding company, provides paper-based packaging solutions in Mainland China, Hong Kong, Vietnam, rest of Southeast Asian countries, Australia, the United States, and internationally. The company offers paper packaging products, including cardboard boxes, gift boxes, displays, corrugated outer cartons, manuals, and user guides to footwear products, sportswear, cookware and kitchenware, smartphones, food and beverage, paper and packaging, non-food-and-beverage-consumables, logistics, e-commerce, and home electronics industries; and packaging solutions to various luxury products industries. It also provides packaging products supply chain management solutions, and board games and various board game accessories. The company was founded in 1978 and is headquartered in Kwun Tong, Hong Kong. Millennium Group International Holdings Limited operates as a subsidiary of YC 1926 (BVI) Limited.

About Sappi

Sappi Limited, together with its subsidiaries, engages in the provision of materials made from woodfiber-based renewable resources in Europe, North America, and South Africa. The company manufacture and sells dissolving pulp, and wood and paper pulp; graphic papers, coated and uncoated papers, and casting and release papers; and packaging and specialty papers, including packaging and specialty papers, including flexible packaging papers, label papers, functional paper packaging products, containerboards, paperboards, silicone base papers, and dye sublimation papers. It also provides biomaterials, such as valida, lignin, furfural, and sweeteners, as well as forestry products; and engages in the treasury and insurance business. The company was founded in 1936 and is headquartered in Johannesburg, South Africa.