Contrasting Rayonier (RYN) & Plum Creek Timber Co. (PCL)
Rayonier (NYSE: RYN) and Plum Creek Timber Co. (NYSE:PCL) are both mid-cap construction 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, profitabiliy and analyst recommendations.
Rayonier pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Plum Creek Timber Co. does not pay a dividend. Rayonier pays out 53.5% of its earnings in the form of a dividend.
Insider and Institutional Ownership
82.6% of Rayonier shares are held by institutional investors. 0.6% of Rayonier shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Rayonier and Plum Creek Timber Co.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Plum Creek Timber Co.||10.53%||9.14%||2.73%|
Earnings & Valuation
This table compares Rayonier and Plum Creek Timber Co.’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Rayonier||$839.95 million||4.25||$398.43 million||$1.87||15.43|
|Plum Creek Timber Co.||N/A||N/A||N/A||N/A||N/A|
Rayonier has higher revenue and earnings than Plum Creek Timber Co..
This is a summary of recent ratings and target prices for Rayonier and Plum Creek Timber Co., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Plum Creek Timber Co.||0||0||0||0||N/A|
Rayonier presently has a consensus price target of $29.25, indicating a potential upside of 1.35%. Given Rayonier’s higher possible upside, research analysts clearly believe Rayonier is more favorable than Plum Creek Timber Co..
Rayonier beats Plum Creek Timber Co. on 7 of the 11 factors compared between the two stocks.
Rayonier Inc. is a timberland real estate investment trust with assets located in some of the timber growing regions in the United States and New Zealand. The Company operates through five segments: Southern Timber, Pacific Northwest Timber, New Zealand Timber, Real Estate and Trading. The Southern Timber, Pacific Northwest Timber and New Zealand Timber segments reflect all activities related to the harvesting of timber and other activities, such as recreational leases, within each respective geography. Its New Zealand Timber segment also reflects land sales that occur within its New Zealand portfolio. Its Real Estate segment reflects the United States land sales. Its Trading segment reflects the log trading activities that support its New Zealand operations. It owned, leased or managed approximately 2.7 million acres of timberlands, as of December 31, 2016. It is engaged in the trading of logs from New Zealand and Australia to Pacific Rim markets.
About Plum Creek Timber Co.
Plum Creek Timber Company, Inc. (Plum Creek) is a private timberland owner in the United States. The Company operates through segments, including Northern Resources segment consists of timberlands in Maine, Michigan, Montana, New Hampshire, Oregon, Vermont, Washington, West Virginia and Wisconsin; Southern Resources segment consists of timberlands in Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Texas, and Virginia; Energy and Natural Resources segment includes natural resource businesses that focus on opportunities for oil and natural gas production, construction aggregates and mineral extraction, wind power and communication and transportation rights of way; Real Estate segment consists of sales of higher value timberlands and non-strategic timberlands, and Other segment provides timber and wood-fiber procurement services. It owns approximately 6.6 million acres of timberlands located in over 19 states.
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