Americold Realty Trust (NYSE:COLD) and Weyerhaeuser (NYSE:WY) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Profitability
This table compares Americold Realty Trust and Weyerhaeuser's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Americold Realty Trust | 4.58% | 4.42% | 2.00% |
Weyerhaeuser | 4.67% | 3.59% | 1.78% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for Americold Realty Trust and Weyerhaeuser, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Americold Realty Trust | 0 | 0 | 4 | 0 | 3.00 |
Weyerhaeuser | 0 | 3 | 5 | 0 | 2.63 |
Americold Realty Trust currently has a consensus target price of $41.3333, indicating a potential upside of 19.53%. Weyerhaeuser has a consensus target price of $31.50, indicating a potential downside of 7.65%. Given Americold Realty Trust's stronger consensus rating and higher possible upside, analysts clearly believe Americold Realty Trust is more favorable than Weyerhaeuser.
Dividends
Americold Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 2.4%. Weyerhaeuser pays an annual dividend of $0.68 per share and has a dividend yield of 2.0%. Americold Realty Trust pays out 71.8% of its earnings in the form of a dividend. Weyerhaeuser pays out 174.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Americold Realty Trust has raised its dividend for 2 consecutive years and Weyerhaeuser has raised its dividend for 1 consecutive years. Americold Realty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Americold Realty Trust and Weyerhaeuser's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Americold Realty Trust | $1.78 billion | 3.96 | $48.16 million | $1.17 | 29.50 |
Weyerhaeuser | $6.55 billion | 3.86 | $-76,000,000.00 | $0.39 | 86.82 |
Americold Realty Trust has higher earnings, but lower revenue than Weyerhaeuser. Americold Realty Trust is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Americold Realty Trust has a beta of 0.08, suggesting that its stock price is 92% less volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.96, suggesting that its stock price is 96% more volatile than the S&P 500.
Insider & Institutional Ownership
77.5% of Weyerhaeuser shares are held by institutional investors. 0.4% of Americold Realty Trust shares are held by insiders. Comparatively, 0.3% of Weyerhaeuser shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Americold Realty Trust beats Weyerhaeuser on 11 of the 17 factors compared between the two stocks.