Potlatch (NASDAQ:PCH) and Nature Wood Group (NASDAQ:NWGL) Financial Comparison

Nature Wood Group (NASDAQ:NWGL) and Potlatch (NASDAQ:PCH) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

Nature Wood Group has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, Potlatch has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nature Wood Group and Potlatch, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nature Wood Group	1	0	0	0	1.00
Potlatch	1	5	3	0	2.22

Potlatch has a consensus target price of $46.43, indicating a potential upside of 19.72%. Given Potlatch’s stronger consensus rating and higher possible upside, analysts clearly believe Potlatch is more favorable than Nature Wood Group.

Insider and Institutional Ownership

86.1% of Potlatch shares are held by institutional investors. 1.0% of Potlatch shares are held by company 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.

Profitability

This table compares Nature Wood Group and Potlatch’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nature Wood Group	N/A	N/A	N/A
Potlatch	3.94%	2.10%	1.29%

Earnings & Valuation

This table compares Nature Wood Group and Potlatch”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nature Wood Group	$21.54 million	0.92	-$8.73 million	N/A	N/A
Potlatch	$1.12 billion	2.69	$21.88 million	$0.82	47.29

Potlatch has higher revenue and earnings than Nature Wood Group.

Summary

Potlatch beats Nature Wood Group on 11 of the 12 factors compared between the two stocks.

About Nature Wood Group

Nature Wood Group Limited, an integrated forestry company, engages in management and harvesting, and down-stream wood-processing and distribution activities. It operates in two divisions, Direct Purchase and Original Design Manufacturer Services; and Manufacturing segments. The company offers a range of products, including logs, decking and flooring products, sawn timber, recycled and synthesized charcoal, machine-made charcoal, and essential oils. It provides IT and business consultancy services. The company serves importers, retailers, and processors through its sales network in Europe, South Asia, South America, North America, and China. The company was formerly known as China Nature Wood Industry Group Limited and changed its name to Nature Wood Group Limited in September 2022. The company was incorporated in 2011 and is headquartered in Macau. Nature Wood Group Limited operates as a subsidiary of Easy Bliss Limited.

About Potlatch

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance.