Critical Review: NINE DRAGONS PA/ADR (NDGPY) versus Fibria Celulose (FBR)

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NINE DRAGONS PA/ADR (OTCMKTS:NDGPY) and Fibria Celulose (NYSE:FBR) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Dividends

NINE DRAGONS PA/ADR pays an annual dividend of $0.55 per share and has a dividend yield of 3.1%. Fibria Celulose pays an annual dividend of $0.11 per share and has a dividend yield of 0.6%. Fibria Celulose pays out 18.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for NINE DRAGONS PA/ADR and Fibria Celulose, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NINE DRAGONS PA/ADR 0 0 0 0 N/A
Fibria Celulose 1 7 0 0 1.88

Fibria Celulose has a consensus target price of $20.25, indicating a potential upside of 6.08%. Given Fibria Celulose’s higher probable upside, analysts plainly believe Fibria Celulose is more favorable than NINE DRAGONS PA/ADR.

Profitability

This table compares NINE DRAGONS PA/ADR and Fibria Celulose’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NINE DRAGONS PA/ADR N/A N/A N/A
Fibria Celulose 11.40% 11.52% 4.40%

Volatility & Risk

NINE DRAGONS PA/ADR has a beta of -0.06, meaning that its stock price is 106% less volatile than the S&P 500. Comparatively, Fibria Celulose has a beta of -0.09, meaning that its stock price is 109% less volatile than the S&P 500.

Earnings & Valuation

This table compares NINE DRAGONS PA/ADR and Fibria Celulose’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NINE DRAGONS PA/ADR $5.75 billion 0.73 $643.52 million N/A N/A
Fibria Celulose $3.68 billion 2.87 $339.90 million $0.61 31.30

NINE DRAGONS PA/ADR has higher revenue and earnings than Fibria Celulose.

Insider & Institutional Ownership

7.0% of Fibria Celulose shares are owned by institutional investors. 40.2% of Fibria Celulose shares are owned 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

Fibria Celulose beats NINE DRAGONS PA/ADR on 7 of the 12 factors compared between the two stocks.

About NINE DRAGONS PA/ADR

Nine Dragons Paper (Holdings) Limited, together with its subsidiaries, manufactures and sells packaging paper, recycled printing and writing paper, pulp, and specialty paper products in the People's Republic of China. It offers linerboard products, including kraftlinerboard, testlinerboard, white top linerboard, and coated linerboard products, as well as high performance corrugating medium and coated duplex board products. The company also provides recycled printing and writing paper, such as uncoated woodfree paper, office paper, etc.; capacitor tissue paper; and insulating paper. In addition, it manufactures wood and bamboo pulp, and unbleached kraft pulp. The company was founded in 1995 and is based in Kwun Tong, Hong Kong. Nine Dragons Paper (Holdings) Limited is a subsidiary of Best Result Holdings Limited.

About Fibria Celulose

Fibria Celulose S.A. produces, sells, and exports short fiber pulp in Brazil and internationally. It manufactures and sells bleached eucalyptus kraft pulp. The company has approximately 1,056,000 hectares of forest base in the states of São Paulo, Minas Gerais, Rio de Janeiro, Espírito Santo, Mato Grosso do Sul, and Bahia. It also exports its products to approximately 35 countries for educational, health, hygiene, and cleaning products. The company was formerly known as Votorantim Celulose e Papel S.A. and changed its name to Fibria Celulose S.A. in November 2009. Fibria Celulose S.A. was founded in 1988 and is headquartered in São Paulo, Brazil.

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