Critical Analysis: Rexford Industrial Realty (NYSE:REXR) & Weyerhaeuser (NYSE:WY)
Rexford Industrial Realty (NYSE:REXR) and Weyerhaeuser (NYSE:WY) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Insider and Institutional Ownership
97.0% of Rexford Industrial Realty shares are owned by institutional investors. Comparatively, 76.3% of Weyerhaeuser shares are owned by institutional investors. 1.7% of Rexford Industrial Realty shares are owned by insiders. Comparatively, 0.4% of Weyerhaeuser shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and recommmendations for Rexford Industrial Realty and Weyerhaeuser, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rexford Industrial Realty||0||3||1||0||2.25|
Rexford Industrial Realty presently has a consensus price target of $44.25, suggesting a potential downside of 8.31%. Weyerhaeuser has a consensus price target of $31.50, suggesting a potential upside of 2.27%. Given Weyerhaeuser’s stronger consensus rating and higher possible upside, analysts clearly believe Weyerhaeuser is more favorable than Rexford Industrial Realty.
Rexford Industrial Realty pays an annual dividend of $0.74 per share and has a dividend yield of 1.5%. Weyerhaeuser pays an annual dividend of $1.36 per share and has a dividend yield of 4.4%. Rexford Industrial Realty pays out 66.1% of its earnings in the form of a dividend. Weyerhaeuser pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rexford Industrial Realty has increased its dividend for 4 consecutive years and Weyerhaeuser has increased its dividend for 8 consecutive years. Weyerhaeuser is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Rexford Industrial Realty has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.
Valuation & Earnings
This table compares Rexford Industrial Realty and Weyerhaeuser’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rexford Industrial Realty||$212.49 million||25.19||$46.21 million||$1.12||43.09|
|Weyerhaeuser||$7.48 billion||3.07||$748.00 million||$1.18||26.10|
Weyerhaeuser has higher revenue and earnings than Rexford Industrial Realty. Weyerhaeuser is trading at a lower price-to-earnings ratio than Rexford Industrial Realty, indicating that it is currently the more affordable of the two stocks.
This table compares Rexford Industrial Realty and Weyerhaeuser’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rexford Industrial Realty||21.32%||2.61%||1.69%|
Weyerhaeuser beats Rexford Industrial Realty on 11 of the 17 factors compared between the two stocks.
Rexford Industrial Realty Company Profile
Rexford Industrial is a real estate investment trust focused on owning and operating industrial properties in Southern California infill markets. The Company owns 179 properties with approximately 22.1 million rentable square feet and manages an additional 20 properties with approximately 1.2 million rentable square feet.
Weyerhaeuser Company Profile
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control 12.2 million acres of timberlands in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products. Our company is a real estate investment trust. In 2018, we generated $7.5 billion in net sales and employed approximately 9,300 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY.
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