Analyzing Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) and West Fraser Timber (OTCMKTS:WFTBF)

Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) and West Fraser Timber (OTCMKTS:WFTBF) are both materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Kimberly-Clark de Mexico SAB de CV and West Fraser Timber, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimberly-Clark de Mexico SAB de CV	0	2	0	0	2.00
West Fraser Timber	0	0	0	0	0.00

Valuation & Earnings

This table compares Kimberly-Clark de Mexico SAB de CV and West Fraser Timber”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimberly-Clark de Mexico SAB de CV	$2.89 billion	2.52	$395.75 million	$0.74	15.97
West Fraser Timber	N/A	N/A	N/A	$3.84	17.61

Kimberly-Clark de Mexico SAB de CV has higher revenue and earnings than West Fraser Timber. Kimberly-Clark de Mexico SAB de CV is trading at a lower price-to-earnings ratio than West Fraser Timber, indicating that it is currently the more affordable of the two stocks.

Dividends

Kimberly-Clark de Mexico SAB de CV pays an annual dividend of $0.57 per share and has a dividend yield of 4.8%. West Fraser Timber pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Kimberly-Clark de Mexico SAB de CV pays out 77.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. West Fraser Timber pays out 7.3% of its earnings in the form of a dividend.

Profitability

This table compares Kimberly-Clark de Mexico SAB de CV and West Fraser Timber’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimberly-Clark de Mexico SAB de CV	14.11%	170.79%	15.49%
West Fraser Timber	N/A	N/A	N/A

Insider and Institutional Ownership

31.7% of West Fraser Timber shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Kimberly-Clark de Mexico SAB de CV beats West Fraser Timber on 6 of the 10 factors compared between the two stocks.

About Kimberly-Clark de Mexico SAB de CV

Kimberly-Clark de México, S. A. B. de C. V., together with its subsidiaries, manufactures, distributes, and markets disposable products in Mexico. The company offers baby diapers, training pants, swim pants, wet wipes, shampoos, creams, bar soaps, and feeding products. It also provides toilet papers, napkins, facial tissues, paper towels, feminine pads, panty liners, tampons, intimate wipes, and menstrual cups. In addition, the company offers pets shampoos, sprays, repellents, and cleaners. Further, it provides liquid hand soap, foaming liquid soap, and liquid body wash; and underwear, protectors, feminine pads, pre-folded products for adults. Additionally, the company offers anti-bacterial gels; disinfectant sprays; face masks; dispensers; hand towels; and industrial cleaning cloths. The company offers its products primarily under the Huggies, KleenBebe, Kleenex, Evenflo, Pétalo, Suavel, Cottonelle, Depend, Kotex, Pull-Ups, GoodNites, Vogue, Delsey, Diapro, LYS, Fancy, Kimberly-Clark, and Escudo brands. The company exports its products. Kimberly-Clark de México, S. A. B. de C. V. was founded in 1925 and is based in Mexico City, Mexico.

About West Fraser Timber

West Fraser Timber Co. Ltd., a diversified wood products company, produces and sells lumber, panels, and pulp and papers in western Canada and the southern United States. It offers spruce-pine-fir, Douglas Fir-Larch, Hem-Fir tree, and southern yellow pine lumber; treated wood products; and newsprint, wood chips, and other residuals and energy products. The company also provides medium density fiberboard panels and plywood; laminated veneer lumber wood products; and northern bleached softwood Kraft pulp used to produce various paper products, including printing and writing papers, specialty grades, and various tissue products. In addition, it offers 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 exports lumber to the Far East, Asia, the Caribbean, Europe, the Middle East, and South America. West Fraser Timber Co. Ltd. was founded in 1955 and is based in Vancouver, Canada.