West Fraser Timber (OTCMKTS:WFTBF) and Weyerhaeuser (NYSE:WY) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.
Earnings & Valuation
This table compares West Fraser Timber and Weyerhaeuser’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|West Fraser Timber||N/A||N/A||N/A||N/A||N/A|
|Weyerhaeuser||$7.48 billion||2.55||$748.00 million||$1.18||21.64|
Weyerhaeuser has higher revenue and earnings than West Fraser Timber.
Institutional and Insider Ownership
76.8% of Weyerhaeuser shares are owned by institutional investors. 0.4% of Weyerhaeuser shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Weyerhaeuser pays an annual dividend of $1.36 per share and has a dividend yield of 5.3%. West Fraser Timber does not pay a dividend. Weyerhaeuser pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser has raised its dividend for 7 consecutive years.
This is a breakdown of recent ratings and recommmendations for West Fraser Timber and Weyerhaeuser, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|West Fraser Timber||0||0||1||0||3.00|
Weyerhaeuser has a consensus price target of $32.75, indicating a potential upside of 28.28%. Given Weyerhaeuser’s higher probable upside, analysts plainly believe Weyerhaeuser is more favorable than West Fraser Timber.
This table compares West Fraser Timber and Weyerhaeuser’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|West Fraser Timber||N/A||N/A||N/A|
Weyerhaeuser beats West Fraser Timber on 10 of the 12 factors compared between the two stocks.
About West Fraser Timber
West Fraser Timber Co. Ltd. produces and sells lumber, panels, and pulp and paper in western Canada and the southern United States. The company offers spruce/pine/fir and southern yellow pine lumber, as well as newsprint, wood chips, and lignin. It also provides treated wood, medium density fiberboard panels, laminated veneer lumber panels, and plywood; northern bleached softwood Kraft pulp used to produce various paper products, including printing and writing papers, specialty grades, and various tissue products; and bleached chemical thermo-mechanical pulp that is used to produce coated board grades, printing and writing paper, and paper towel/napkin grades, as well as specialty papers and tissue grades. The company was founded in 1955 and is based in Vancouver, Canada.
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control 12.2 million acres of timberlands in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products. Our company is a real estate investment trust. In 2018, we generated $7.5 billion in net sales and employed approximately 9,300 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY.
Receive News & Ratings for West Fraser Timber Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for West Fraser Timber and related companies with MarketBeat.com's FREE daily email newsletter.