Financial Analysis: Domtar Corporation (UFS) vs. Wausau Paper Corp. (WPP)
Domtar Corporation (NYSE: UFS) and Wausau Paper Corp. (NYSE:WPP) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Earnings & Valuation
This table compares Domtar Corporation and Wausau Paper Corp.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Domtar Corporation||$5.07 billion||0.49||$619.00 million||$2.62||14.98|
|Wausau Paper Corp.||N/A||N/A||N/A||N/A||N/A|
Domtar Corporation has higher revenue and earnings than Wausau Paper Corp..
Domtar Corporation pays an annual dividend of $1.66 per share and has a dividend yield of 4.2%. Wausau Paper Corp. does not pay a dividend. Domtar Corporation pays out 63.4% of its earnings in the form of a dividend. Wausau Paper Corp. has raised its dividend for 7 consecutive years.
Insider & Institutional Ownership
91.5% of Domtar Corporation shares are held by institutional investors. 1.0% of Domtar Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Domtar Corporation and Wausau Paper Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wausau Paper Corp.||1.79%||5.31%||1.52%|
This is a breakdown of current recommendations and price targets for Domtar Corporation and Wausau Paper Corp., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wausau Paper Corp.||0||0||0||0||N/A|
Domtar Corporation currently has a consensus price target of $40.78, suggesting a potential upside of 3.87%. Given Domtar Corporation’s higher possible upside, analysts plainly believe Domtar Corporation is more favorable than Wausau Paper Corp..
Domtar Corporation beats Wausau Paper Corp. on 9 of the 12 factors compared between the two stocks.
About Domtar Corporation
Domtar Corporation designs, manufactures, markets and distributes a range of fiber-based products, including communication papers, specialty and packaging papers and absorbent hygiene products. The Company segments include Pulp and Paper and Personal Care. The Pulp and Paper segment consists of the design, manufacturing, marketing and distribution of communication, specialty and packaging papers, as well as softwood, fluff and hardwood market pulp. The Personal Care segment consists of the design, manufacturing, marketing and distribution of absorbent hygiene products. The Company is a marketer of uncoated freesheet paper in North America serving a range of customers, including merchants, retail outlets, stationers, printers, publishers, converters and end users. It is also a marketer and producer of a line of incontinence care products, as well as infant diapers. It has a network of wood fiber converting assets that produce paper grade, fluff and specialty pulp.
About Wausau Paper Corp.
Wausau Paper Corp. (Wausau Paper) manufactures, converts and sells a line of towel and tissue products. The Company’s products are marketed along with soap and dispensing systems for the commercial and industrial away-from-home market. Under the Wausau Paper trademark, towel and tissue products, made primarily from recycled material, are marketed under a number of brands including Alliance, Artisan, DublSoft, DublNature, EcoSoft, OptiCore and Revolution. These products include washroom roll and folded towels; tissue products; a variety of towel, tissue, and soap dispensers; industrial wipers; dairy towels; household roll towels, and other towel and tissue products. The Company also offers controlled-use dispensing systems for the away-from-home market. The Company’s products are primarily sold within the United States and Canada.
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