Fibria Celulose (NYSE: FBR) and Clearwater Paper Corporation (NYSE:CLW) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitabiliy, earnings, dividends, valuation, risk and analyst recommendations.

Earnings and Valuation

This table compares Fibria Celulose and Clearwater Paper Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fibria Celulose $2.81 billion 2.05 $906.05 million N/A N/A
Clearwater Paper Corporation $1.74 billion 0.46 $181.12 million $2.27 21.34

Fibria Celulose has higher revenue and earnings than Clearwater Paper Corporation.

Profitability

This table compares Fibria Celulose and Clearwater Paper Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fibria Celulose 10.55% 7.04% 2.98%
Clearwater Paper Corporation 2.23% 10.34% 3.05%

Insider & Institutional Ownership

6.2% of Fibria Celulose shares are held by institutional investors. Comparatively, 86.2% of Clearwater Paper Corporation shares are held by institutional investors. 40.2% of Fibria Celulose shares are held by company insiders. Comparatively, 2.4% of Clearwater Paper Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Fibria Celulose pays an annual dividend of $0.19 per share and has a dividend yield of 1.8%. Clearwater Paper Corporation does not pay a dividend.

Volatility & Risk

Fibria Celulose has a beta of 0.02, suggesting that its share price is 98% less volatile than the S&P 500. Comparatively, Clearwater Paper Corporation has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Fibria Celulose and Clearwater Paper Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fibria Celulose 0 2 3 0 2.60
Clearwater Paper Corporation 0 3 2 0 2.40

Fibria Celulose presently has a consensus target price of $10.20, suggesting a potential downside of 2.02%. Clearwater Paper Corporation has a consensus target price of $66.00, suggesting a potential upside of 36.22%. Given Clearwater Paper Corporation’s higher possible upside, analysts clearly believe Clearwater Paper Corporation is more favorable than Fibria Celulose.

Summary

Fibria Celulose beats Clearwater Paper Corporation on 8 of the 14 factors compared between the two stocks.

About Fibria Celulose

Fibria Celulose S.A. (Fibria) is a forestry company, which is engaged in the production of eucalyptus pulp. The Company is engaged in the production and sale of short fiber pulp from its pulp production facilities located in the cities of Aracruz (State of Espirito Santo), Tres Lagoas (State of Mato Grosso do Sul), Jacarei (State of Sao Paulo) and Eunapolis (State of Bahia). The Company’s activities are focused on the growth of renewable and forests, and the manufacture and sale of bleached eucalyptus kraft pulp. The Company’s annual production capacity is approximately 5.3 million tons of pulp. Fibria has over 969,000 hectares of forests, with approximately 568,000 hectares of planted forests, over 338,000 hectares of environmental preservation and conservation areas, and approximately 63,000 hectares destined for other uses. The pulp produced by Fibria is exported to approximately 40 countries. The pulp produced for export is delivered to customers by sea and through various ports.

About Clearwater Paper Corporation

Clearwater Paper Corporation manufactures consumer tissue, away-from-home (AFH) tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The Company operates through two segments: Consumer Products segment, and Pulp and Paperboard segment. The Company’s Consumer Products segment manufactures and sells a line of at-home tissue products, as well as AFH products. The Company’s Pulp and Paperboard segment manufactures and markets bleached paperboard for the packaging industry. It is a producer of solid bleach sulfate (SBS) paperboard. The Company is a supplier of private label tissue to a range of retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the Company produces bleached paperboard used by printers and packaging converters, and offers services that include custom sheeting, slitting and cutting.

Receive News & Ratings for Fibria Celulose S.A. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Fibria Celulose S.A. and related companies with MarketBeat.com's FREE daily email newsletter.