Stora Enso Oyj (OTCMKTS:SEOAY – Get Free Report) and Stella-Jones (OTCMKTS:STLJF – Get Free Report) are both mid-cap materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.
Earnings and Valuation
This table compares Stora Enso Oyj and Stella-Jones”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stora Enso Oyj | $10.55 billion | 0.89 | $786.32 million | $0.84 | 14.24 |
| Stella-Jones | $2.50 billion | 1.08 | $241.19 million | $1.47 | 33.75 |
Profitability
This table compares Stora Enso Oyj and Stella-Jones’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stora Enso Oyj | 6.20% | 2.31% | 1.29% |
| Stella-Jones | 8.66% | 14.92% | 7.39% |
Institutional & Insider Ownership
0.0% of Stora Enso Oyj shares are held by institutional investors. 8.1% of Stora Enso Oyj shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Dividends
Stora Enso Oyj pays an annual dividend of $0.11 per share and has a dividend yield of 0.9%. Stella-Jones pays an annual dividend of $0.98 per share and has a dividend yield of 2.0%. Stora Enso Oyj pays out 13.1% of its earnings in the form of a dividend. Stella-Jones pays out 66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Analyst Ratings
This is a summary of current recommendations for Stora Enso Oyj and Stella-Jones, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stora Enso Oyj | 1 | 1 | 1 | 0 | 2.00 |
| Stella-Jones | 0 | 2 | 2 | 0 | 2.50 |
Stora Enso Oyj presently has a consensus target price of $10.80, suggesting a potential downside of 9.70%. Given Stora Enso Oyj’s higher possible upside, research analysts clearly believe Stora Enso Oyj is more favorable than Stella-Jones.
Summary
Stella-Jones beats Stora Enso Oyj on 9 of the 15 factors compared between the two stocks.
About Stora Enso Oyj
Stora Enso Oyj provides renewable solutions for the packaging, biomaterials, wooden constructions, and paper industries in Finland and internationally. It operates through Packaging Materials, Packaging Solutions, Biomaterials, Wood Products, Forest, Paper, and Other segments. The company's Packaging Materials segment offers virgin and recycled fiber replace fossil-based materials with low-carbon, renewable and recyclable packaging materials for food and beverage, pharmaceutical, and transport packaging. Its Packaging Solutions segment develops and sells fiber-based packaging products and services, including converting corrugated boards and carton boards; and new materials, such as formed fiber and wood foams into standard and bespoke packaging solutions for retail, e-commerce, and industrials. The company's Biomaterials segment provides various pulp for packaging, paper, tissue, specialties, and hygiene product producers; and tall oil and turpentine from biomass. Its Wood Products segment offers wood-based solutions, including digital tools for design and construction of building projects with wood; applications for windows and doors; and pellets for sustainable heating solutions. The company's Forest segment engages in sustainable forest management, as well as supplies wood. Its Paper segments offers portfolio of products for print and office use. The company's Other segment produces electricity and heat. It serves packaging manufacturers, brand owners, paper merchants, publishers, retailers, printing houses, converters, and construction companies. The company was incorporated in 1996 and is headquartered in Helsinki, Finland.
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.
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