Head to Head Contrast: Rayonier (NYSE:RYN) & Lamar Advertising (NASDAQ:LAMR)

Rayonier (NYSE:RYN) and Lamar Advertising (NASDAQ:LAMR) are both real estate companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Valuation and Earnings

This table compares Rayonier and Lamar Advertising”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rayonier	$484.50 million	12.40	$474.38 million	$0.45	44.88
Lamar Advertising	$2.33 billion	6.61	$587.15 million	$5.48	27.65

Lamar Advertising has higher revenue and earnings than Rayonier. Lamar Advertising is trading at a lower price-to-earnings ratio than Rayonier, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Rayonier has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Lamar Advertising has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for Rayonier and Lamar Advertising, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rayonier	0	5	0	1	2.33
Lamar Advertising	0	3	2	0	2.40

Rayonier presently has a consensus price target of $24.80, suggesting a potential upside of 22.80%. Lamar Advertising has a consensus price target of $160.17, suggesting a potential upside of 5.72%. Given Rayonier’s higher possible upside, research analysts plainly believe Rayonier is more favorable than Lamar Advertising.

Profitability

This table compares Rayonier and Lamar Advertising’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rayonier	7.83%	3.49%	2.37%
Lamar Advertising	23.90%	54.94%	8.04%

Dividends

Rayonier pays an annual dividend of $1.04 per share and has a dividend yield of 5.1%. Lamar Advertising pays an annual dividend of $6.40 per share and has a dividend yield of 4.2%. Rayonier pays out 231.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lamar Advertising pays out 116.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Lamar Advertising has raised its dividend for 5 consecutive years.

Insider and Institutional Ownership

89.1% of Rayonier shares are owned by institutional investors. Comparatively, 93.8% of Lamar Advertising shares are owned by institutional investors. 0.9% of Rayonier shares are owned by company insiders. Comparatively, 15.2% of Lamar Advertising shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Lamar Advertising beats Rayonier on 13 of the 18 factors compared between the two stocks.

About Rayonier

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2023, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.85 million acres), U.S. Pacific Northwest (418,000 acres) and New Zealand (421,000 acres).

About Lamar Advertising

Lamar Advertising Company operates as an outdoor advertising company in the United States and Canada. The company owns and operates billboards, logo signs, and transit advertising displays, as well as rents space for advertising on billboards, buses, shelters, benches, logo plates, and in airport terminals. Lamar Advertising Company was founded in 1902 and is headquartered in Baton Rouge, Louisiana.