Energy Focus (NASDAQ:EFOI) and Weyerhaeuser (NYSE:WY) are both construction companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.
Institutional and Insider Ownership
8.9% of Energy Focus shares are owned by institutional investors. Comparatively, 77.5% of Weyerhaeuser shares are owned by institutional investors. 19.5% of Energy Focus shares are owned by insiders. Comparatively, 0.3% of Weyerhaeuser shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Energy Focus and Weyerhaeuser, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Energy Focus | 0 | 0 | 1 | 0 | 3.00 |
| Weyerhaeuser | 0 | 4 | 3 | 1 | 2.63 |
Energy Focus currently has a consensus price target of $13.75, indicating a potential upside of 235.37%. Weyerhaeuser has a consensus price target of $35.6250, indicating a potential downside of 10.13%. Given Energy Focus' stronger consensus rating and higher possible upside, equities analysts plainly believe Energy Focus is more favorable than Weyerhaeuser.
Volatility and Risk
Energy Focus has a beta of 2.35, indicating that its stock price is 135% more volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500.
Profitability
This table compares Energy Focus and Weyerhaeuser's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Energy Focus | -44.27% | -118.08% | -31.10% |
| Weyerhaeuser | 4.67% | 3.59% | 1.78% |
Earnings and Valuation
This table compares Energy Focus and Weyerhaeuser's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Energy Focus | $12.70 million | 1.30 | $-7,370,000.00 | ($3.00) | -1.37 |
| Weyerhaeuser | $6.55 billion | 4.53 | $-76,000,000.00 | $0.39 | 101.64 |
Energy Focus has higher earnings, but lower revenue than Weyerhaeuser. Energy Focus is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.
Summary
Weyerhaeuser beats Energy Focus on 10 of the 15 factors compared between the two stocks.
