Financial Survey: Essendant (NASDAQ:ESND) versus Cascades (CADNF)


Essendant (NASDAQ:ESND) and Cascades (OTCMKTS:CADNF) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.

Insider & Institutional Ownership

82.0% of Essendant shares are held by institutional investors. 2.7% of Essendant shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Essendant and Cascades, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Essendant 0 1 0 0 2.00
Cascades 1 1 3 0 2.40

Essendant currently has a consensus price target of $10.00, suggesting a potential downside of 21.88%. Given Essendant’s higher possible upside, analysts plainly believe Essendant is more favorable than Cascades.

Profitability

This table compares Essendant and Cascades’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Essendant -1.15% 0.11% 0.03%
Cascades N/A N/A N/A

Valuation & Earnings

This table compares Essendant and Cascades’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Essendant $5.04 billion 0.10 -$266.98 million N/A N/A
Cascades N/A N/A N/A N/A N/A

Cascades has lower revenue, but higher earnings than Essendant.

Dividends

Essendant pays an annual dividend of $0.56 per share and has a dividend yield of 4.4%. Cascades does not pay a dividend.

Summary

Essendant beats Cascades on 7 of the 10 factors compared between the two stocks.

About Essendant

Essendant Inc. operates as a distributor of workplace items in the United States and internationally. It offers janitorial and sanitation supplies, breakroom items, foodservice consumables, safety and security items, and paper and packaging supplies. The company also provides technology products, such as computer accessories, imaging supplies, and data storage products; and computer hardware, including printers and other peripherals. In addition, it offers traditional office products, including writing instruments, business machines, filing and record storage products, presentation products, shipping and mailing supplies, calendars, and general office accessories; and industrial supplies, such as hand and power tools, safety and security supplies, janitorial equipment, and oilfield and welding supplies, as well as industrial maintenance, repair, and operations items. Further, the company provides cut sheet paper products; automotive products; and desks, filing and storage solutions, and seating and systems furniture, as well as various products for education, government, healthcare, and professional services markets. It serves office and workplace dealers; facilities and maintenance distributors; technology, military, automotive aftermarket, healthcare, and other vertical suppliers; industrial resellers; national resellers; and resellers in the e-commerce channel. Essendant Inc. distributes its products through 70 distribution centers to approximately 29,000 reseller customers, as well as through online. The company was formerly known as United Stationers Inc. and changed its name to Essendant Inc. in June 2015. Essendant Inc. was founded in 1922 and is headquartered in Deerfield, Illinois.

About Cascades

Cascades Inc. produces, converts, and markets packaging and tissue products in Canada, the United States, and internationally. The company operates through four segments: Containerboard, Boxboard Europe, Specialty Products, and Tissue Papers. It offers containerboards, and coated recycled and virgin boxboards, as well as converts corrugated products. The company also provides roll headers; wrappers; packaging reams; laminated paperboards for food packaging and furniture backing industries; specialty containers; honeycomb paperboards; uncoated paperboard partitions for the beer, wine, and spirits industry; uncoated recycled paperboards for use in packaging converters and industrial users of headers and wrappers for the paper industry, as well as partitions used as protective packaging; and backing for vinyl flooring. In addition, it provides egg filler flats for egg processors and four-cup carriers for the quick-service restaurant industry; polystyrene foam trays under the EVOK brand for processors and retailers in the food industry, as well as plate and bowls; rigid plastic packaging products under the Ultratill and Poultray brands for food processors and retailers; and flexible films for frozen foods, bakery, and ice industries. Further, the company offers services to recover and process discarded materials for the municipal, industrial, commercial, and institutional sectors. Additionally, it offers bathroom and facial tissues, paper towels, paper hand towels and napkins, parent rolls, industrial wipes, and other products under the Decor, North River, Cascades, Cascades Moka, Tandem, Tandem+, Cascades Elite, Wiping Solutions, Cascades PRO Signature, Cascades PRO Perform, Cascades PRO Select, Cascades Pro Tandem, Cascades PRO Tuff-Job, Cascades Fluff, Cascades Tuff, April Soft, and Nature’s Choice labels. The company sells its products through sales force and external representatives. Cascades Inc. was founded in 1964 and is headquartered in Kingsey Falls, Canada.

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