Canfor (OTCMKTS:CFPZF) and Weyerhaeuser (NYSE:WY) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
76.8% of Weyerhaeuser shares are owned by institutional investors. 0.4% of Weyerhaeuser shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Canfor and Weyerhaeuser’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Weyerhaeuser||$7.48 billion||2.55||$748.00 million||$1.18||21.64|
Weyerhaeuser has higher revenue and earnings than Canfor.
This table compares Canfor and Weyerhaeuser’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for Canfor and Weyerhaeuser, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Weyerhaeuser has a consensus target price of $32.75, indicating a potential upside of 28.28%. Given Weyerhaeuser’s higher probable upside, analysts plainly believe Weyerhaeuser is more favorable than Canfor.
Weyerhaeuser pays an annual dividend of $1.36 per share and has a dividend yield of 5.3%. Canfor 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.
Weyerhaeuser beats Canfor on 10 of the 12 factors compared between the two stocks.
Canfor Company Profile
Canfor Corporation operates as an integrated forest products company in Canada, Asia, the United States, Europe, and internationally. It operates through Lumber, and Pulp and Paper segments. The company manufactures and sells remanufactured and finger-jointed lumber, engineered wood products, wood chips, wood pellets, and logs, as well as produces green energy. Its lumber products are used in residential, commercial, and industrial construction. The company also produces and sells pulp and paper products, including northern bleached softwood kraft and bleached chemi-thermo mechanical pulp; and purchases and sells residual fiber products. Canfor Corporation was founded in 1938 and is headquartered in Vancouver, Canada.
Weyerhaeuser Company Profile
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.
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