Analyzing West Fraser Timber (NYSE:WFG) and Infinya (OTCMKTS:HAIPF)

West Fraser Timber (NYSE:WFG) and Infinya (OTCMKTS:HAIPF) are both materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, risk, analyst recommendations, profitability, valuation and dividends.

Insider and Institutional Ownership

40.2% of West Fraser Timber shares are owned by institutional investors. 1.8% of West Fraser Timber shares are owned by insiders. Comparatively, 11.5% of Infinya shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

West Fraser Timber has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Infinya has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Valuation and Earnings

This table compares West Fraser Timber and Infinya”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Fraser Timber	$5.46 billion	0.97	-$937.00 million	($15.44)	-4.39
Infinya	N/A	N/A	N/A	N/A	N/A

Infinya has lower revenue, but higher earnings than West Fraser Timber.

Analyst Recommendations

This is a summary of recent recommendations and price targets for West Fraser Timber and Infinya, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Fraser Timber	1	3	4	0	2.38
Infinya	0	0	0	0	0.00

West Fraser Timber currently has a consensus price target of $83.20, suggesting a potential upside of 22.84%. Given West Fraser Timber’s stronger consensus rating and higher possible upside, equities research analysts plainly believe West Fraser Timber is more favorable than Infinya.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
West Fraser Timber	-22.98%	-10.84%	-8.19%
Infinya	N/A	N/A	N/A

Summary

West Fraser Timber beats Infinya on 6 of the 10 factors compared between the two stocks.

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.

About Infinya

Infinya Ltd. engages in the manufacture and marketing of writing and printing paper, packaging cartons, and in the collection and processing of waste paper. It operates through the following segments: Recycling, Paper Rolls for Carton, Carton Packaging. The Recycling segment engages in the processing and recycling of waste paper, waste carton, and plastic. The Paper Rolls for Carton segment engages in the sale of recycled paper rolls for cartons to companies engaging in the manufacture of carton packages. The Carton Packaging segment engages in the sale of carton packaging products for consumer goods. The company was founded in 1951, and is headquartered in Hadera, Israel.