Stella-Jones (OTCMKTS:STLJF – Get Free Report) and Lee & Man Paper Manufacturing (OTCMKTS:LMPMY – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.
Dividends
Stella-Jones pays an annual dividend of $0.99 per share and has a dividend yield of 1.9%. Lee & Man Paper Manufacturing pays an annual dividend of $0.24 per share and has a dividend yield of 5.2%. Stella-Jones pays out 67.3% of its earnings in the form of a dividend. Lee & Man Paper Manufacturing pays out 6.0% 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. Lee & Man Paper Manufacturing is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Stella-Jones and Lee & Man Paper Manufacturing”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stella-Jones | $2.50 billion | 1.15 | $241.19 million | $1.47 | 35.95 |
| Lee & Man Paper Manufacturing | N/A | N/A | N/A | $4.02 | 1.16 |
Stella-Jones has higher revenue and earnings than Lee & Man Paper Manufacturing. Lee & Man Paper Manufacturing is trading at a lower price-to-earnings ratio than Stella-Jones, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Stella-Jones and Lee & Man Paper Manufacturing, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stella-Jones | 0 | 2 | 2 | 0 | 2.50 |
| Lee & Man Paper Manufacturing | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Stella-Jones and Lee & Man Paper Manufacturing’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% |
| Lee & Man Paper Manufacturing | N/A | N/A | N/A |
Institutional and Insider Ownership
0.0% of Lee & Man Paper Manufacturing shares are owned by institutional investors. 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.
Summary
Stella-Jones beats Lee & Man Paper Manufacturing on 7 of the 11 factors compared between the two stocks.
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.
About Lee & Man Paper Manufacturing
Lee & Man Paper Manufacturing Limited, an investment holding company, engages in the manufacture and trading of packaging papers, pulps, and tissue papers in the People's Republic of China, Vietnam, Malaysia, Macau, and Hong Kong. The company operates through Packaging Paper, Tissue Paper, and Pulp segments. It offers various pulp products, such as dissolved pulps for use in viscose chemical fibers, bamboo fibers, glass papers, acetate fibers, refined rayons, etc.; unbleached bamboo kraft pulps for use in ecru life papers, environmental table wares, food bags, etc.; and bleached bamboo kraft pulps for use in tissue papers, fine papers, cigarette papers, cup papers, etc. The company also provides containerboard products, including kraft and test linerboards for use in cartons, graphic carton, paper bags, file boxes, paperboards, wall papers, etc.; and corrugating liners for use in corrugated layer and septi-layer of paperboards, and honeycomb-like products. In addition, it offers coated duplex board products for use in graphic cartons, color card printing, and offset printing, as well as in packaging of commodities, household appliances, IT products, medicine/health care products, food products, toys, gifts, ceramic products, stationery products, beverages, etc.; toilet rolls; and unbleached paper for use in various applications, such as baby care, menstruation, facial, sensitive skin, table, kitchen, etc. Lee & Man Paper Manufacturing Limited was founded in 1994 and is headquartered in North Point, Hong Kong.
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