Analyzing Stella-Jones (OTCMKTS:STLJF) & Clearwater Paper (NYSE:CLW)

Stella-Jones (OTCMKTS:STLJFGet Free Report) and Clearwater Paper (NYSE:CLWGet Free Report) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Insider & Institutional Ownership

90.0% of Clearwater Paper shares are owned by institutional investors. 2.4% of Clearwater Paper shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Stella-Jones and Clearwater Paper, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stella-Jones 0 2 2 0 2.50
Clearwater Paper 1 5 2 0 2.12

Clearwater Paper has a consensus target price of $18.50, suggesting a potential downside of 18.61%. Given Clearwater Paper’s higher probable upside, analysts plainly believe Clearwater Paper is more favorable than Stella-Jones.

Earnings and Valuation

This table compares Stella-Jones and Clearwater Paper”s top-line 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 1.22 $241.19 million $1.47 37.97
Clearwater Paper $1.56 billion 0.24 -$18.60 million ($3.04) -7.48

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

Profitability

This table compares Stella-Jones and Clearwater Paper’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%
Clearwater Paper -3.24% -7.95% -4.06%

Summary

Stella-Jones beats Clearwater Paper on 9 of the 12 factors compared between the two stocks.

About Stella-Jones

(Get Free Report)

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 Clearwater Paper

(Get Free Report)

Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through Pulp and Paperboard, and Consumer Products segments. The Pulp and Paperboard segment manufactures and markets bleached paperboard; Solid Bleached Sulfate paperboard that is used to produce folding cartons, liquid packaging, cups and plates, blister and carded packaging, and top sheet and commercial printing items; and hardwood and softwood pulp, as well as offers services that include custom sheeting, slitting, and cutting. It sells its products to carton converters, folding carton converters, merchants, and commercial printers. The Consumer Products segment provides a line of at-home tissue products, including bath tissues, paper towels, facial tissues, and napkins; recycled fiber value grade products; and away-from-home tissues. This segment sells its products to retailers, including grocery, club, mass merchants, and discount stores. The company was incorporated in 2005 and is based in Spokane, Washington.

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