Weyerhaeuser (NYSE:WY) & UFP Industries (NASDAQ:UFPI) Financial Comparison

Weyerhaeuser (NYSE:WY) and UFP Industries (NASDAQ:UFPI) are both construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Weyerhaeuser and UFP Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weyerhaeuser	1	1	6	1	2.78
UFP Industries	1	1	2	0	2.25

Weyerhaeuser presently has a consensus price target of $32.88, indicating a potential upside of 25.95%. UFP Industries has a consensus price target of $134.00, indicating a potential upside of 29.11%. Given UFP Industries’ higher probable upside, analysts plainly believe UFP Industries is more favorable than Weyerhaeuser.

Earnings & Valuation

This table compares Weyerhaeuser and UFP Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weyerhaeuser	$7.12 billion	2.64	$396.00 million	$0.38	68.69
UFP Industries	$6.65 billion	0.91	$414.56 million	$5.76	18.02

UFP Industries has lower revenue, but higher earnings than Weyerhaeuser. UFP Industries is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.

Dividends

Weyerhaeuser pays an annual dividend of $0.84 per share and has a dividend yield of 3.2%. UFP Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Weyerhaeuser pays out 221.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UFP Industries pays out 24.3% of its earnings in the form of a dividend. Weyerhaeuser has increased its dividend for 3 consecutive years and UFP Industries has increased its dividend for 5 consecutive years.

Insider & Institutional Ownership

83.0% of Weyerhaeuser shares are held by institutional investors. Comparatively, 81.8% of UFP Industries shares are held by institutional investors. 0.3% of Weyerhaeuser shares are held by company insiders. Comparatively, 2.6% of UFP Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Weyerhaeuser and UFP Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weyerhaeuser	3.97%	2.95%	1.73%
UFP Industries	5.31%	10.95%	8.48%

Volatility and Risk

Weyerhaeuser has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, UFP Industries has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Summary

UFP Industries beats Weyerhaeuser on 10 of the 18 factors compared between the two stocks.

About Weyerhaeuser

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.

About UFP Industries

UFP Industries, Inc., through its subsidiaries, designs, manufactures, and markets wood and non-wood composites, and other materials in North America, Europe, Asia, and Australia. It operates through Retail, Packaging, and Construction segments. The Retail segment offers treated lumber products, including decking, fencing, lattice, and other products; pressure-treated and fire-retardant products used primarily for outdoor decking environments; and lawn and garden products, consisting of wood and vinyl fencing options, garden beds and planters, pergolas, picnic tables, and other landscaping products. This segment also offers wood plastic composites, composite decking, and related decking accessories, including non- aluminum railing systems, balusters, post caps, and other products, as well as pre-painted and primed shiplap and project boards. The Packaging segment provides custom and structural packaging products, pallets, corrugate, foam, labels, strapping, and films. The construction segment offers roof trusses, cut-to-size dimensional and board lumber, plywoods, and oriented strand boards; engineered wood components, including roof and floor trusses, wall panels, I-joists, and lumber packages; and alternate materials components, such as metal trusses, sheathed and pre-finished light gauge metal wall panels, aluminum decks, and rail accessories, as well as distributes siding, electrical, and plumbing products. This segment also engages in the manufacture of components; design, manufacture, and supply of wood forms and related products to set or form concrete for structures, such as parking garages, stadiums, and other infrastructure projects. It also offers interior fixtures, millwork, and casework for retail and commercial structures. The company was formerly known as Universal Forest Products, Inc. and changed its name to UFP Industries, Inc. in April 2020. UFP Industries, Inc. was incorporated in 1955 and is headquartered in Grand Rapids, Michigan.