Resolute Forest Products (NYSE: RFP) and Resolute Forest Products (NYSE:ABH) are both large-cap basic materials 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 and Institutional Ownership

87.5% of Resolute Forest Products shares are held by institutional investors. 1.1% of Resolute Forest Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Resolute Forest Products has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Resolute Forest Products has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Resolute Forest Products and Resolute Forest Products, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Resolute Forest Products 1 2 1 0 2.00
Resolute Forest Products 0 0 0 0 N/A

Resolute Forest Products currently has a consensus price target of $7.58, suggesting a potential downside of 5.80%. Given Resolute Forest Products’ higher possible upside, analysts plainly believe Resolute Forest Products is more favorable than Resolute Forest Products.

Profitability

This table compares Resolute Forest Products and Resolute Forest Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Resolute Forest Products -4.05% -0.30% -0.12%
Resolute Forest Products -8.51% -18.29% -6.88%

Valuation & Earnings

This table compares Resolute Forest Products and Resolute Forest Products’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Resolute Forest Products $3.55 billion 0.20 -$81.00 million ($1.58) -5.09
Resolute Forest Products N/A N/A N/A ($1.68) -4.79

Resolute Forest Products has higher revenue, but lower earnings than Resolute Forest Products. Resolute Forest Products is trading at a lower price-to-earnings ratio than Resolute Forest Products, indicating that it is currently the more affordable of the two stocks.

Summary

Resolute Forest Products beats Resolute Forest Products on 9 of the 9 factors compared between the two stocks.

Resolute Forest Products Company Profile

Resolute Forest Products Inc. operates in the forest products industry. It offers a range of forest products, including market pulp, tissue, wood products, newsprint and specialty papers. As of December 31, 2016, it owned or operated over 40 pulp, paper, tissue and wood products facilities in the United States and Canada. Its segments include market pulp, tissue, wood products, newsprint and specialty papers. As of December 31, 2016, it produced market pulp at seven facilities in North America, with total capacity of approximately 1.7 million metric tons. As of December 31, 2016, it produced tissue products at two facilities in North America, both located in Florida. As of December 31, 2016, it operated 16 sawmills in Canada that produces construction-grade lumber sold in North America, on the east coast. As of December 31, 2016, it produced newsprint at 10 facilities in North America. As of December 31, 2016, it produced specialty papers at five facilities in North America.

Resolute Forest Products Company Profile

Resolute Forest Products Inc. operates in the forest products industry. It offers a range of forest products, including market pulp, tissue, wood products, newsprint and specialty papers. As of December 31, 2016, it owned or operated over 40 pulp, paper, tissue and wood products facilities in the United States and Canada. Its segments include market pulp, tissue, wood products, newsprint and specialty papers. As of December 31, 2016, it produced market pulp at seven facilities in North America, with total capacity of approximately 1.7 million metric tons. As of December 31, 2016, it produced tissue products at two facilities in North America, both located in Florida. As of December 31, 2016, it operated 16 sawmills in Canada that produces construction-grade lumber sold in North America, on the east coast. As of December 31, 2016, it produced newsprint at 10 facilities in North America. As of December 31, 2016, it produced specialty papers at five facilities in North America.

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