Weyerhaeuser Vs. Rayonier: Which Lumber Stock Is A Better Buy?

Analysts expect RYN’s revenue to increase 3.2% in the quarter ending June 30 but decline 3% in the current year and more than 1% next year. Also, its EPS is expected to decline 27.3% in the current quarter, but then rise 56% in the current year and 5.1% next year. Furthermore, its EPS is expected to grow at a rate of 5% per annum over the next five years.


WY’s trailing-12-month revenue is 8.8 times RYN’s. WY is also more profitable, with a 27.7% gross profit margin versus RYN’s 18.9%.

Also, WY’s 9.4% ROE and 6% ROA compare favorably with RYN’s 1.7% ROE and 2.1% ROA.


In terms of forward non-GAAP P/E, RYN is currently trading at 91.3x, 436.4% higher than WY, which is currently trading at 17.02x. Also, in terms of forward EV/sales, RYN’s 8.34x is 113.8% higher than WY’s 3.90x. And WY’s 11.05x forward EV/EBITDA is significantly lower than RYN’s 25.52x.

Thus, WY looks more affordable here.

POWR Ratings

While RYN has an overall D rating, which translates to Sell in our proprietary POWR Ratings system, WY has an overall B rating, which equates to a Buy. The POWR Ratings assesses stocks by 118 different factors, each with its own weighting.

Both WY and RYN have a C Momentum Grade due to their mixed price performance. However, WY has a B grade for Sentiment, which is consistent with analysts’ expectations that its revenue and EPS will increase. But RYN’s C grade for Sentiment reflects  analysts’ low EPS and revenue growth expectations.

Also, in terms of Growth Grade, WY has been graded a B, given its impressive EBITDA and EPS rise over the past three years. In comparison, RYN’s F Growth Grade signifies its poor performance over the past three years.

Of the 53 stocks in the REITs – Diversified industry, WY is ranked #3. RYN is ranked #16 of 22 stocks in the REITs – Industrial industry.

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