WFG vs. SJ, K, LUN, FM, AGI, PAAS, CS, BTO, LUG, and MX
Should you be buying West Fraser Timber stock or one of its competitors? The main competitors of West Fraser Timber include Stella-Jones (SJ), Kinross Gold (K), Lundin Mining (LUN), First Quantum Minerals (FM), Alamos Gold (AGI), Pan American Silver (PAAS), Capstone Copper (CS), B2Gold (BTO), Lundin Gold (LUG), and Methanex (MX). These companies are all part of the "basic materials" sector.
West Fraser Timber (TSE:WFG) and Stella-Jones (TSE:SJ) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, media sentiment, earnings, community ranking, dividends and institutional ownership.
46.9% of West Fraser Timber shares are held by institutional investors. Comparatively, 55.4% of Stella-Jones shares are held by institutional investors. 33.2% 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 will outperform the market over the long term.
Stella-Jones has a net margin of 9.82% compared to West Fraser Timber's net margin of -2.59%. Stella-Jones' return on equity of 20.32% beat West Fraser Timber's return on equity.
In the previous week, West Fraser Timber had 2 more articles in the media than Stella-Jones. MarketBeat recorded 3 mentions for West Fraser Timber and 1 mentions for Stella-Jones. Stella-Jones' average media sentiment score of 0.59 beat West Fraser Timber's score of 0.48 indicating that Stella-Jones is being referred to more favorably in the news media.
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.
West Fraser Timber pays an annual dividend of C$1.62 per share and has a dividend yield of 1.4%. Stella-Jones pays an annual dividend of C$1.12 per share and has a dividend yield of 1.4%. West Fraser Timber pays out -59.6% of its earnings in the form of a dividend. Stella-Jones pays out 19.9% 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 has a beta of 2.08, suggesting that its share price is 108% more volatile than the S&P 500. Comparatively, Stella-Jones has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.
Stella-Jones received 339 more outperform votes than West Fraser Timber when rated by MarketBeat users. However, 65.42% of users gave West Fraser Timber an outperform vote while only 64.31% of users gave Stella-Jones an outperform vote.
West Fraser Timber presently has a consensus price target of C$110.50, indicating a potential downside of 5.52%. Stella-Jones has a consensus price target of C$93.57, indicating a potential upside of 18.44%. Given Stella-Jones' higher probable upside, analysts plainly believe Stella-Jones is more favorable than West Fraser Timber.
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 WFG and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis 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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