West Fraser Timber (NYSE:WFG – Get Free Report) and Orchids Paper Products (OTCMKTS:TISUQ – Get Free Report) are both materials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Profitability
This table compares West Fraser Timber and Orchids Paper Products’ 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% |
| Orchids Paper Products | N/A | N/A | N/A |
Valuation & Earnings
This table compares West Fraser Timber and Orchids Paper Products”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| West Fraser Timber | $5.46 billion | 0.98 | -$937.00 million | ($15.44) | -4.42 |
| Orchids Paper Products | N/A | N/A | N/A | N/A | N/A |
Orchids Paper Products has lower revenue, but higher earnings than West Fraser Timber.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for West Fraser Timber and Orchids Paper Products, 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 |
| Orchids Paper Products | 0 | 0 | 0 | 0 | 0.00 |
West Fraser Timber currently has a consensus price target of $83.20, suggesting a potential upside of 21.98%. Given West Fraser Timber’s stronger consensus rating and higher probable upside, analysts clearly believe West Fraser Timber is more favorable than Orchids Paper Products.
Institutional & Insider Ownership
40.2% of West Fraser Timber shares are held by institutional investors. 1.8% of West Fraser Timber shares are held by company insiders. Comparatively, 11.4% of Orchids Paper Products shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
West Fraser Timber beats Orchids Paper Products on 5 of the 9 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 Orchids Paper Products
Orchids Paper Products Company is a tissue paper company that manufacturers and converts tissue product for the private label consumer market.
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