Contrasting West Fraser Timber (WFG) and Its Competitors

West Fraser Timber (NYSE:WFG) is one of 15 public companies in the “BLDG PRD – WOOD” industry, but how does it compare to its rivals? We will compare West Fraser Timber to related companies based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, risk, dividends and valuation.

Insider and Institutional Ownership

40.2% of West Fraser Timber shares are owned by institutional investors. Comparatively, 82.9% of shares of all “BLDG PRD – WOOD” companies are owned by institutional investors. 1.8% of West Fraser Timber shares are owned by insiders. Comparatively, 4.4% of shares of all “BLDG PRD – WOOD” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

West Fraser Timber pays an annual dividend of $1.28 per share and has a dividend yield of 1.7%. West Fraser Timber pays out -752.9% of its earnings in the form of a dividend. As a group, “BLDG PRD – WOOD” companies pay a dividend yield of 1.7% and pay out 37.6% of their earnings in the form of a dividend. West Fraser Timber has increased its dividend for 3 consecutive years. West Fraser Timber is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Risk & Volatility

West Fraser Timber has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, West Fraser Timber’s rivals have a beta of 1.43, indicating that their average stock price is 43% more volatile than the S&P 500.

Valuation & Earnings

This table compares West Fraser Timber and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
West Fraser Timber	$6.17 billion	-$5.00 million	-444.98
West Fraser Timber Competitors	$4.92 billion	$297.37 million	-11.49

West Fraser Timber has higher revenue, but lower earnings than its rivals. West Fraser Timber is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares West Fraser Timber and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Fraser Timber	0.03%	0.99%	0.78%
West Fraser Timber Competitors	7.65%	10.27%	6.04%

Analyst Recommendations

This is a summary of current ratings and target prices for West Fraser Timber and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Fraser Timber	0	0	5	0	3.00
West Fraser Timber Competitors	188	1156	1094	47	2.40

West Fraser Timber presently has a consensus price target of $100.40, indicating a potential upside of 32.72%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 19.38%. Given West Fraser Timber’s stronger consensus rating and higher probable upside, analysts clearly believe West Fraser Timber is more favorable than its rivals.

Summary

West Fraser Timber rivals beat West Fraser Timber on 9 of the 15 factors compared.

About West Fraser Timber

West Fraser Timber Co. Ltd., a diversified wood products company, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals and renewable energy. It offers spruce-pine-fir, douglas fir-larch, hem-fir, and southern yellow pine lumber, treated wood products, medium density fiberboard panels and plywood, oriented strand board, and laminated veneer lumber wood products, as well as particleboards. The company also provides northern bleached softwood Kraft pulp and bleached chemical thermo-mechanical pulp used to produce various paper products, including printing and writing papers, paperboard products, tissue and towel products, and a variety of other paper grades. Further, it offers bioproducts, including bioenergy and biomaterial. Its products are used in home construction, repair and remodeling, papers, tissue, and box materials, and industrial applications. The company sells its products to major retail chains, contractor supply yards, and wholesalers, as well as industrial customers for further processing or as components for other products in Canada, the United States, the United Kingdom, Europe, and internationally. West Fraser Timber Co. Ltd. was founded in 1955 and is headquartered in Vancouver, Canada.