SJ vs. WFG, CFP, IFP, PL, ADN, WEF, GDL, GFP, CFF, and EVA
Should you be buying Stella-Jones stock or one of its competitors? The main competitors of Stella-Jones include West Fraser Timber (WFG), Canfor (CFP), Interfor (IFP), Pinnacle Renewable Energy (PL), Acadian Timber (ADN), Western Forest Products (WEF), Goodfellow (GDL), GreenFirst Forest Products (GFP), Conifex Timber (CFF), and Enviva (EVA). These companies are all part of the "lumber & wood production" industry.
West Fraser Timber (TSE:WFG) and Stella-Jones (TSE:SJ) are both mid-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, community ranking, dividends, media sentiment and analyst recommendations.
West Fraser Timber has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500. Comparatively, Stella-Jones has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
Stella-Jones has lower revenue, but higher earnings than West Fraser Timber. West Fraser Timber is trading at a lower price-to-earnings ratio than Stella-Jones, indicating that it is currently the more affordable of the two stocks.
Stella-Jones received 340 more outperform votes than West Fraser Timber when rated by MarketBeat users. However, 64.22% of users gave West Fraser Timber an outperform vote while only 63.86% of users gave Stella-Jones an outperform vote.
46.3% of West Fraser Timber shares are held by institutional investors. Comparatively, 53.9% of Stella-Jones shares are held by institutional investors. 33.1% of West Fraser Timber shares are held by insiders. Comparatively, 0.1% of Stella-Jones 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.
West Fraser Timber presently has a consensus target price of C$107.50, indicating a potential downside of 11.58%. Stella-Jones has a consensus target price of C$92.14, indicating a potential downside of 3.93%. Given West Fraser Timber's higher possible upside, analysts clearly believe Stella-Jones is more favorable than West Fraser Timber.
West Fraser Timber pays an annual dividend of C$1.62 per share and has a dividend yield of 1.3%. Stella-Jones pays an annual dividend of C$1.12 per share and has a dividend yield of 1.2%. West Fraser Timber pays out -109.5% of its earnings in the form of a dividend. Stella-Jones pays out 18.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. West Fraser Timber is clearly the better dividend stock, given its higher yield and lower payout ratio.
Stella-Jones has a net margin of 10.14% compared to Stella-Jones' net margin of -1.39%. West Fraser Timber's return on equity of 20.77% beat Stella-Jones' return on equity.
In the previous week, West Fraser Timber had 11 more articles in the media than Stella-Jones. MarketBeat recorded 15 mentions for West Fraser Timber and 4 mentions for Stella-Jones. West Fraser Timber's average media sentiment score of 0.40 beat Stella-Jones' score of 0.16 indicating that Stella-Jones is being referred to more favorably in the news media.
Summary
Stella-Jones beats West Fraser Timber on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SJ and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of TSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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