Acadian Timber (OTCMKTS:ACAZF – Get Free Report) and Suzano (NYSE:SUZ – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.
Profitability
This table compares Acadian Timber and Suzano’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Acadian Timber | N/A | N/A | N/A |
| Suzano | 17.20% | 15.55% | 4.29% |
Dividends
Acadian Timber pays an annual dividend of $0.82 per share and has a dividend yield of 6.6%. Suzano pays an annual dividend of $0.18 per share and has a dividend yield of 2.2%. Acadian Timber pays out 168.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Suzano pays out 14.3% of its earnings in the form of a dividend.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Acadian Timber | N/A | N/A | N/A | $0.49 | 25.66 |
| Suzano | $8.97 billion | 1.12 | $2.40 billion | $1.26 | 6.44 |
Suzano has higher revenue and earnings than Acadian Timber. Suzano is trading at a lower price-to-earnings ratio than Acadian Timber, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
57.3% of Acadian Timber shares are held by institutional investors. Comparatively, 2.5% of Suzano shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Acadian Timber and Suzano, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Acadian Timber | 0 | 0 | 1 | 0 | 3.00 |
| Suzano | 0 | 3 | 1 | 0 | 2.25 |
Suzano has a consensus target price of $12.20, indicating a potential upside of 50.34%. Given Suzano’s higher possible upside, analysts plainly believe Suzano is more favorable than Acadian Timber.
Summary
Suzano beats Acadian Timber on 7 of the 11 factors compared between the two stocks.
About Acadian Timber
Acadian Timber Corp. supplies primary forest products in Eastern Canada and the Northeastern United States. The company operates in two segments, NB Timberlands and Maine Timberlands. Its products include softwood and hardwood sawlogs, pulpwood, and biomass by-products. The company owns and manages freehold timberlands in New Brunswick and Maine; and provides timber services relating to Crown licensed timberlands in New Brunswick. Acadian Timber Corp. was founded in 2006 and is headquartered in Edmundston, Canada.
About Suzano
Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. It operates through Pulp and Paper segments. The company offers coated and uncoated printing and writing papers, paperboards, tissue papers, and market and fluff pulps; and lignin. It also engages in the research, development, and production of biofuel; operation of port terminals; power generation and distribution business; commercialization of equipment and parts; industrialization, commercialization, and exporting of pulp and standing wood; road freight transport; biotechnology research and development; and commercialization of paper and computer materials. In addition, the company is involved in the business office, production packaging, and financial fundraising activities; research, development, production, commercialization, and distribution of wood-based textile fibers, yarns, and filaments produced from cellulose and microfibrillated cellulose; and research and development of wood raw materials for the textile industry. Suzano S.A. was formerly known as Suzano Papel e Celulose S.A. and changed its name to Suzano S.A. in April 2019. The company was founded in 1924 and is headquartered in Salvador, Brazil.
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