Critical Analysis: Svenska Cellulosa Aktiebolaget SCA (publ) (OTCMKTS:SVCBY) & Canfor (OTCMKTS:CFPZF)

Canfor (OTCMKTS:CFPZF) and Svenska Cellulosa Aktiebolaget SCA (publ) (OTCMKTS:SVCBY) are both materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, earnings, profitability, dividends, valuation and analyst recommendations.

Profitability

This table compares Canfor and Svenska Cellulosa Aktiebolaget SCA (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canfor	N/A	N/A	N/A
Svenska Cellulosa Aktiebolaget SCA (publ)	79.33%	3.96%	2.65%

Analyst Ratings

This is a summary of current recommendations and price targets for Canfor and Svenska Cellulosa Aktiebolaget SCA (publ), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canfor	0	3	2	0	2.40
Svenska Cellulosa Aktiebolaget SCA (publ)	0	0	0	0	0.00

Valuation and Earnings

This table compares Canfor and Svenska Cellulosa Aktiebolaget SCA (publ)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canfor	N/A	N/A	N/A	$1.25	8.97
Svenska Cellulosa Aktiebolaget SCA (publ)	$2.07 billion	5.60	$1.64 billion	$0.43	42.33

Svenska Cellulosa Aktiebolaget SCA (publ) has higher revenue and earnings than Canfor. Canfor is trading at a lower price-to-earnings ratio than Svenska Cellulosa Aktiebolaget SCA (publ), indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

39.7% of Canfor shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Canfor beats Svenska Cellulosa Aktiebolaget SCA (publ) on 5 of the 9 factors compared between the two stocks.

About Canfor

Canfor Corporation operates as an integrated forest products company in the United States, Asia, Canada, Europe, and internationally. It operates in two segments, Lumber, and Pulp and Paper. The company manufactures and sells softwood lumber, remanufactured lumber products, engineered wood, and other lumber-related products, as well as wood chips and pellets; and generates green energy. It also offers dimension lumber products, such as spruce pine fir, southern yellow pine, Douglas fir larch, and Canfor red; specialty lumber products, including Balfour boards, WynnWood board, decking/fascia, lamstock, long lengths, shop/clear, and access mat lumber; and pulp and paper products comprising bleached and unbleached softwood kraft pulp, as well as bleached, colored, and unbleached kraft paper. The company was founded in 1938 and is headquartered in Vancouver, Canada.

About Svenska Cellulosa Aktiebolaget SCA (publ)

Svenska Cellulosa Aktiebolaget SCA (publ), a forest products company, develops, produces, and sells forest, wood, pulp, and paper products worldwide. The company offers wood products to the home improvement and building materials sectors, including machined softwood, carcassing, MDF, decking, and sheet materials for builders' merchants and DIY retailers; and various wood products, industrial components, standard wood products, and raw materials, as well as logistic, warehouse, and IT solutions for the wood industry. It also provides decking, carcassing, softwood PSE, door lining and casing, softwood molding, composite decking, sheet material, and MDF molding wood products for use in homes; and softwood shavings for horses. In addition, the company offers pulp products under the Celeste, Star, and Cirrus names; coated papers, including glossy and matt surfaces; uncoated printing paper; and Kraftliner products for consumer durables, electronics, hazardous goods, industrial products, fruit and vegetables, frozen foods, etc. Further, it provides forwarding services for various transport modes, such as truck, rail, and barge, as well as marine and road transport; and liquid biofuels, solid biofuels, pellets, stall pellets, and wind energy. Additionally, the company engages in the distribution and wholesale of wood products; production of Kraft and chemical thermomechanical pulps, and containerboards; and publication of paper for magazines, catalogues, and commercial print. Svenska Cellulosa Aktiebolaget SCA (publ) was founded in 1929 and is headquartered in Sundsvall, Sweden.