Rubicon (OTCMKTS:RUBNF) and Weyerhaeuser (NYSE:WY) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Earnings and Valuation
This table compares Rubicon and Weyerhaeuser’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Weyerhaeuser||$7.48 billion||2.55||$748.00 million||$1.18||21.65|
Weyerhaeuser has higher revenue and earnings than Rubicon.
This is a summary of current ratings for Rubicon and Weyerhaeuser, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Weyerhaeuser has a consensus price target of $32.75, indicating a potential upside of 28.18%. Given Weyerhaeuser’s higher probable upside, analysts plainly believe Weyerhaeuser is more favorable than Rubicon.
This table compares Rubicon and Weyerhaeuser’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Weyerhaeuser pays an annual dividend of $1.36 per share and has a dividend yield of 5.3%. Rubicon does not pay a dividend. Weyerhaeuser pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Weyerhaeuser has raised its dividend for 7 consecutive years.
Institutional and Insider Ownership
76.8% of Weyerhaeuser shares are owned by institutional investors. 0.4% of Weyerhaeuser shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Weyerhaeuser beats Rubicon on 10 of the 11 factors compared between the two stocks.
Rubicon Limited invests in forestry related industries. The company engages in the forestry genetics business. It produces and sells tree seedlings with a focus on pine and eucalyptus species. The company provides its tree seedlings under the ArborGen brand name to forest land owners and managers primarily in the United States, Brazil, and Australasia. Rubicon Limited was incorporated in 2001 and is based in Auckland, New Zealand.
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control 12.2 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. Our company is a real estate investment trust. In 2018, we generated $7.5 billion in net sales and employed approximately 9,300 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY.
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