Sappi (OTCMKTS:SPPJY) and Canfor Pulp Products (OTCMKTS:CFPUF) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Insider and Institutional Ownership

0.0% of Sappi shares are held by institutional investors. 0.7% of Sappi shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Sappi and Canfor Pulp Products’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sappi $5.81 billion 0.47 $323.00 million $0.60 8.48
Canfor Pulp Products N/A N/A N/A N/A N/A

Sappi has higher revenue and earnings than Canfor Pulp Products.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sappi and Canfor Pulp Products, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sappi 0 0 1 0 3.00
Canfor Pulp Products 0 0 0 0 N/A

Profitability

This table compares Sappi and Canfor Pulp Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sappi 5.79% 17.75% 6.03%
Canfor Pulp Products N/A N/A N/A

Dividends

Sappi pays an annual dividend of $0.14 per share and has a dividend yield of 2.8%. Canfor Pulp Products does not pay a dividend. Sappi pays out 23.3% of its earnings in the form of a dividend.

Summary

Sappi beats Canfor Pulp Products on 8 of the 9 factors compared between the two stocks.

Sappi Company Profile

Sappi Limited, a woodfibre company, manufactures and sells dissolving wood pulp, specialties and packaging papers, and graphic/printing papers to direct and indirect customers in North America, Europe, Southern Africa, and internationally. The company offers dissolving wood pulp products that are used by converters to create viscose fiber for clothing and textiles, acetate tow, and pharmaceutical products, as well as a range of consumer products. It also provides packaging and specialty papers, which are used in the manufacture of soup sachets, luxury carry bags, cosmetic and confectionery packaging, boxes for agricultural products for export, and tissue wadding for household tissue products, as well as casting and release papers for the fashion, textiles, automobile, and household industries. In addition, the company offers graphic paper products that are used by printers in the production of books, brochures, magazines, catalogues, direct mail, newspapers, and various other print applications; and newsprint, uncoated graphic, and business papers. Further, it develops and processes biomaterials and biochemicals; offers sawn timber for construction and furniture manufacturing purposes; and produces and sells green electricity through a network of 5 hydro, 2 gas, and 31 steam turbines that generate approximately 800MW renewable power on 14 sites across 7 countries, as well as produces biogas. The company was formerly known as South African Pulp and Paper Industries Limited and changed its name to Sappi Limited in 1973. Sappi Limited was founded in 1936 and is headquartered in Johannesburg, South Africa.

Canfor Pulp Products Company Profile

Canfor Pulp Products Inc., together with its subsidiaries, produces and supplies pulp and paper products worldwide. The company operates through two segments, Pulp and Paper. It offers solid wood; bleached and unbleached softwood pulp; and bleached and unbleached kraft, and coloured kraft papers. The company also supplies fiber products; and produces green energy. The company was incorporated in 2010 and is headquartered in Vancouver, Canada. Canfor Pulp Products Inc. is a subsidiary of Canadian Forest Products Ltd.

Receive News & Ratings for Sappi Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sappi and related companies with MarketBeat.com's FREE daily email newsletter.