VEREIT (NYSE:VER) and Weyerhaeuser (NYSE:WY) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.
Profitability
This table compares VEREIT and Weyerhaeuser's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
VEREIT | 26.30% | 4.73% | 2.36% |
Weyerhaeuser | 4.67% | 3.59% | 1.78% |
Institutional & Insider Ownership
77.5% of Weyerhaeuser shares are owned by institutional investors. 0.3% of VEREIT shares are owned by company insiders. Comparatively, 0.3% of Weyerhaeuser shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
VEREIT pays an annual dividend of $1.85 per share and has a dividend yield of 4.6%. Weyerhaeuser pays an annual dividend of $0.68 per share and has a dividend yield of 1.8%. VEREIT pays out 53.3% 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. VEREIT has increased its dividend for 1 consecutive years and Weyerhaeuser has increased its dividend for 1 consecutive years. VEREIT is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
VEREIT has a beta of 1.06, suggesting that its stock price is 6% more 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.
Analyst Ratings
This is a summary of recent ratings and price targets for VEREIT and Weyerhaeuser, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
VEREIT | 1 | 4 | 3 | 0 | 2.25 |
Weyerhaeuser | 0 | 3 | 4 | 0 | 2.57 |
VEREIT presently has a consensus price target of $40.2917, indicating a potential upside of 0.15%. Weyerhaeuser has a consensus price target of $32.4286, indicating a potential downside of 14.71%. Given VEREIT's higher probable upside, equities analysts clearly believe VEREIT is more favorable than Weyerhaeuser.
Valuation & Earnings
This table compares VEREIT and Weyerhaeuser's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
VEREIT | $1.24 billion | 7.45 | $-300,350,000.00 | $3.47 | 11.60 |
Weyerhaeuser | $6.55 billion | 4.34 | $-76,000,000.00 | $0.39 | 97.49 |
Weyerhaeuser has higher revenue and earnings than VEREIT. VEREIT is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.
Summary
VEREIT beats Weyerhaeuser on 9 of the 16 factors compared between the two stocks.