Comparing Rayonier (RYN) and The Competition

Rayonier (NYSE:RYN) is one of 35 publicly-traded companies in the “Specialized REITs” industry, but how does it weigh in compared to its competitors? We will compare Rayonier to similar companies based on the strength of its analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Volatility & Risk

Rayonier has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Rayonier’s competitors have a beta of 0.92, meaning that their average stock price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Rayonier and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rayonier	1	4	0	1	2.17
Rayonier Competitors	523	2790	3673	191	2.49

Rayonier presently has a consensus price target of $24.00, indicating a potential upside of 11.60%. As a group, “Specialized REITs” companies have a potential upside of 12.66%. Given Rayonier’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Rayonier has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Rayonier and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rayonier	$484.50 million	$474.38 million	37.08
Rayonier Competitors	$2.58 billion	$596.00 million	31.74

Rayonier’s competitors have higher revenue and earnings than Rayonier. Rayonier is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Rayonier pays an annual dividend of $1.04 per share and has a dividend yield of 4.8%. Rayonier pays out 179.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialized REITs” companies pay a dividend yield of 3.3% and pay out 119.5% of their earnings in the form of a dividend.

Institutional & Insider Ownership

89.1% of Rayonier shares are held by institutional investors. Comparatively, 78.0% of shares of all “Specialized REITs” companies are held by institutional investors. 0.9% of Rayonier shares are held by insiders. Comparatively, 7.5% of shares of all “Specialized REITs” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Rayonier and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rayonier	11.49%	2.69%	1.86%
Rayonier Competitors	-4.53%	-3.15%	2.03%

Summary

Rayonier competitors beat Rayonier on 9 of the 15 factors compared.

About Rayonier

Rayonier is a real estate investment trust focused on owning and managing timberlands in the United States. Its portfolio includes forestland in the U.S. South and Pacific Northwest, where the company grows and harvests timber. The company sells logs and other wood products to customers in industries such as lumber, pulp and paper. It also generates revenue by selling land for uses including real estate development, recreation and conservation. Rayonier traces its roots to 1926, when Rainier Pulp and Paper Company was established in Washington state.