Weyerhaeuser Company (WY) & Enviva Partners, (EVA) Head to Head Analysis
Weyerhaeuser Company (NYSE: WY) and Enviva Partners, (NYSE:EVA) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitabiliy and analyst recommendations.
This is a summary of recent ratings and recommmendations for Weyerhaeuser Company and Enviva Partners,, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Weyerhaeuser Company presently has a consensus target price of $36.57, suggesting a potential upside of 8.84%. Enviva Partners, has a consensus target price of $27.80, suggesting a potential upside of 1.09%. Given Weyerhaeuser Company’s stronger consensus rating and higher possible upside, equities analysts clearly believe Weyerhaeuser Company is more favorable than Enviva Partners,.
Valuation & Earnings
This table compares Weyerhaeuser Company and Enviva Partners,’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Weyerhaeuser Company||$6.67 billion||3.79||$1.64 billion||$1.45||23.17|
|Enviva Partners,||$479.15 million||1.51||$82.76 million||$0.71||38.73|
Weyerhaeuser Company has higher revenue and earnings than Enviva Partners,. Weyerhaeuser Company is trading at a lower price-to-earnings ratio than Enviva Partners,, indicating that it is currently the more affordable of the two stocks.
This table compares Weyerhaeuser Company and Enviva Partners,’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Weyerhaeuser Company has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Enviva Partners, has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.
Insider & Institutional Ownership
77.4% of Weyerhaeuser Company shares are owned by institutional investors. 1.3% of Weyerhaeuser Company shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Weyerhaeuser Company pays an annual dividend of $1.24 per share and has a dividend yield of 3.7%. Enviva Partners, pays an annual dividend of $2.22 per share and has a dividend yield of 8.1%. Weyerhaeuser Company pays out 85.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enviva Partners, pays out 312.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enviva Partners, has increased its dividend for 5 consecutive years. Enviva Partners, is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Weyerhaeuser Company beats Enviva Partners, on 13 of the 18 factors compared between the two stocks.
Weyerhaeuser Company Company Profile
Weyerhaeuser Company is a timber, land and forest products company. As of December 31, 2016, the Company owned or controlled 13.1 million acres of timberlands, primarily in the United States, and manages additional timberlands under long-term licenses in Canada. The Company’s segments include Timberlands; Real Estate, Energy and Natural Resources (Real Estate & ENR), and Wood Products. The Timberlands segment’s offerings include logs, timber and recreational access via leases. The Real Estate & ENR segment includes sales of timberlands; rights to explore for and extract hard minerals, oil and gas production, and coal, and equity interests in its Real Estate Development Ventures. The Wood Products segment includes the manufacturing and distribution of wood products. The Wood Products segment is engaged in softwood lumber, engineered wood products, structural panels, medium density fiberboard and building materials distribution.
Enviva Partners, Company Profile
Enviva Partners, LP is a supplier of utility-grade wood pellets to power generators. The Company procures wood fiber and processes it into utility-grade wood pellets and loads the finished wood pellets into railcars, trucks and barges that are transported to deep-water marine terminals, where they are received, stored and loaded onto oceangoing vessels for transport to the Company’s principally Northern European customers. The Company’s principal product, utility-grade wood pellets, is a traded energy commodity that is used as a substitute for coal in both dedicated and co-fired power generation and combined heat and power plants. It enables power generators to generate electricity. The Company’s customers use its wood pellets as a substitute fuel for coal in dedicated biomass or co-fired coal power plants. Wood pellets are exported from the Company’s deep-water marine terminal in Chesapeake, Virginia, from a deep-water marine terminal in Wilmington, North Carolina.
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