Western Forest Products (WEF) Competitors

Western Forest Products (TSE:WEF) and West Fraser Timber (TSE:WFG) are both mid-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, media sentiment, institutional ownership and earnings.

Is WEF or WFG a better dividend stock?

Western Forest Products pays an annual dividend of C$0.05 per share and has a dividend yield of 0.4%. West Fraser Timber pays an annual dividend of C$1.73 per share and has a dividend yield of 1.7%. Western Forest Products pays out -36.2% of its earnings in the form of a dividend. West Fraser Timber pays out -103.4% 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.

Is WEF or WFG more profitable?

West Fraser Timber has a net margin of -1.53% compared to Western Forest Products' net margin of -4.21%. West Fraser Timber's return on equity of -1.33% beat Western Forest Products' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Western Forest Products	-4.21%	-7.69%	-4.24%
West Fraser Timber	-1.53%	-1.33%	2.18%

Which has better valuation and earnings, WEF or WFG?

Western Forest Products has higher earnings, but lower revenue than West Fraser Timber. Western Forest Products is trading at a lower price-to-earnings ratio than West Fraser Timber, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Forest Products	C$1.04B	3.83	-C$43.70M	-C$0.14	-90.89
West Fraser Timber	C$4.36B	1.28	-C$66.55M	-C$1.67	-59.79

Which has more volatility and risk, WEF or WFG?

Western Forest Products has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, West Fraser Timber has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500.

Do analysts rate WEF or WFG?

Western Forest Products currently has a consensus price target of C$13.38, indicating a potential upside of 6.66%. West Fraser Timber has a consensus price target of C$142.00, indicating a potential upside of 42.00%. Given West Fraser Timber's stronger consensus rating and higher possible upside, analysts clearly believe West Fraser Timber is more favorable than Western Forest Products.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Forest Products	0 Sell rating(s)	3 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	2.00
West Fraser Timber	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50

Do institutionals & insiders have more ownership in WEF or WFG?

39.0% of Western Forest Products shares are owned by institutional investors. Comparatively, 46.4% of West Fraser Timber shares are owned by institutional investors. 0.7% of Western Forest Products shares are owned by company insiders. Comparatively, 33.7% of West Fraser Timber shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Does the media favor WEF or WFG?

In the previous week, West Fraser Timber had 1 more articles in the media than Western Forest Products. MarketBeat recorded 1 mentions for West Fraser Timber and 0 mentions for Western Forest Products. Western Forest Products' average media sentiment score of 0.67 beat West Fraser Timber's score of 0.00 indicating that Western Forest Products is being referred to more favorably in the media.

Company	Overall Sentiment
Western Forest Products	Positive
West Fraser Timber	Neutral

Summary

West Fraser Timber beats Western Forest Products on 14 of the 18 factors compared between the two stocks.