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.

Profitability

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.

Valuation

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.

View single page >> |

Disclaimer: Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.