Financial Analysis: Sugarmade (OTCMKTS:SGMD) vs. UPM-Kymmene Oyj (OTCMKTS:UPMMY)

Sugarmade (OTCMKTS:SGMDGet Rating) and UPM-Kymmene Oyj (OTCMKTS:UPMMYGet Rating) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Sugarmade and UPM-Kymmene Oyj, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sugarmade 0 0 0 0 N/A
UPM-Kymmene Oyj 0 3 3 0 2.50

UPM-Kymmene Oyj has a consensus price target of $36.90, suggesting a potential upside of 7.02%. Given UPM-Kymmene Oyj’s higher probable upside, analysts plainly believe UPM-Kymmene Oyj is more favorable than Sugarmade.

Valuation and Earnings

This table compares Sugarmade and UPM-Kymmene Oyj’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sugarmade $3.98 million 0.90 -$5.93 million N/A N/A
UPM-Kymmene Oyj N/A N/A N/A N/A N/A

UPM-Kymmene Oyj has lower revenue, but higher earnings than Sugarmade.

Profitability

This table compares Sugarmade and UPM-Kymmene Oyj’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sugarmade -195.00% -408.89% -51.70%
UPM-Kymmene Oyj N/A N/A N/A

Institutional & Insider Ownership

8.0% of Sugarmade shares are held by institutional investors. 5.2% of Sugarmade shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

UPM-Kymmene Oyj beats Sugarmade on 5 of the 8 factors compared between the two stocks.

About Sugarmade

(Get Rating)

Sugarmade, Inc. engages in the paper and paper-based products business in the United States. It operates through three segments: Paper and Paper-Based Products, Non-Medical Supplies, and Cannabis Products Delivery Service and Sales. The company also produces and wholesales custom printed and generic supplies, such as plastic cold cups, paper coffee cups, yogurt cups, ice cream cups, cup lids, cup sleeves, edible packaging, food containers, soup containers, plastic spoons, and other related products to quick-service restaurants. In addition, it offers non-medical personal protective equipment. Further, the company operates the cannabis products delivery and sale services under the BudCars, Lemon Glow, and Nug Avenue brand names. It also offers its products through CarryOutSupplies.com website. Sugarmade, Inc. is based in Monrovia, California.

About UPM-Kymmene Oyj

(Get Rating)

UPM-Kymmene Oyj engages in the forest-based bio industry. It operates through UPM Biorefining, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, UPM Plywood, and Other operations segments. The company provides softwood, birch, and eucalyptus pulp for tissue, specialty, and graphic papers and packaging; sawn timber for joinery, packaging, furniture, planning, and construction industries; and wood-based renewable diesel and renewable naphtha for the petrochemical industry. It is also involved in the generation of electricity through hydro and nuclear power plants. In addition, the company offers self-adhesive label materials for branding and promotion, information, and functional labelling in the food, beverage, personal care, pharmaceutical, and logistics segments; and label papers, release base papers, office papers, and flexible packaging for labelling, packing, commercial siliconizing, and printing, as well as graphic papers for advertising, publishing, and home and office use. Further, it provides plywood and veneer products for construction, vehicle flooring, liquefied natural gas shipbuilding, and parquet manufacturing, as well as for other industrial applications; wood and wood-based biomass, and forestry services for forest investors and owners; wood-based lignin products for industrial use and cell hydrogels for 3D cell culturing; UPM ProFi decking products and UPM formi granules; and biomedical products. The company primarily operates in Europe, North America, Asia, and internationally. UPM-Kymmene Oyj was founded in 1871 and is headquartered in Helsinki, Finland.

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