Analyzing Canfor (OTCMKTS:CFPZF) & Stella-Jones (OTCMKTS:STLJF)

Stella-Jones (OTCMKTS:STLJF) and Canfor (OTCMKTS:CFPZF) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Profitability

This table compares Stella-Jones and Canfor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stella-Jones	8.66%	14.92%	7.39%
Canfor	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for Stella-Jones and Canfor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stella-Jones	0	2	2	0	2.50
Canfor	0	4	2	0	2.33

Earnings and Valuation

This table compares Stella-Jones and Canfor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stella-Jones	$2.50 billion	1.15	$241.19 million	$1.47	35.95
Canfor	N/A	N/A	N/A	$1.25	8.80

Stella-Jones has higher revenue and earnings than Canfor. Canfor is trading at a lower price-to-earnings ratio than Stella-Jones, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

39.7% of Canfor shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Stella-Jones beats Canfor on 7 of the 8 factors compared between the two stocks.

About Stella-Jones

Stella-Jones Inc. produces and sells pressure-treated wood products in Canada and the United States. It operates through two segments, Pressure-Treated Wood; and Logs and Lumber. The company offers railway ties and timbers for short line and commercial railroad operators; and wood utility poles for electrical utilities and telecommunication companies. It also provides residential lumber and accessories to retailers for outdoor applications; industrial products, which include wood for railway bridges and crossings, marine and foundation pilings, construction timbers, and coal tar-based products; and lumber for local home-building markets. Stella-Jones Inc. was incorporated in 1992 and is headquartered in Saint-Laurent, Canada.

About Canfor

Canfor Corporation operates as an integrated forest products company in the United States, Asia, Canada, Europe, and internationally. It operates in two segments, Lumber, and Pulp and Paper. The company manufactures and sells softwood lumber, remanufactured lumber products, engineered wood, and other lumber-related products, as well as wood chips and pellets; and generates green energy. It also offers dimension lumber products, such as spruce pine fir, southern yellow pine, Douglas fir larch, and Canfor red; specialty lumber products, including Balfour boards, WynnWood board, decking/fascia, lamstock, long lengths, shop/clear, and access mat lumber; and pulp and paper products comprising bleached and unbleached softwood kraft pulp, as well as bleached, colored, and unbleached kraft paper. The company was founded in 1938 and is headquartered in Vancouver, Canada.