Comparing West Fraser Timber (OTCMKTS:WFTBF) & Magnera (NYSE:MAGN)

Magnera (NYSE:MAGN) and West Fraser Timber (OTCMKTS:WFTBF) are both materials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Institutional and Insider Ownership

76.9% of Magnera shares are held by institutional investors. Comparatively, 31.7% of West Fraser Timber shares are held by institutional investors. 1.0% of Magnera 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.

Profitability

This table compares Magnera and West Fraser Timber’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magnera	-3.41%	-10.77%	-2.87%
West Fraser Timber	N/A	N/A	N/A

Valuation & Earnings

This table compares Magnera and West Fraser Timber”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magnera	$3.20 billion	0.14	-$159.00 million	($2.01)	-6.13
West Fraser Timber	N/A	N/A	N/A	$3.84	17.93

West Fraser Timber has lower revenue, but higher earnings than Magnera. Magnera is trading at a lower price-to-earnings ratio than West Fraser Timber, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Magnera and West Fraser Timber, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magnera	1	2	0	0	1.67
West Fraser Timber	0	0	0	0	0.00

Magnera presently has a consensus target price of $16.00, indicating a potential upside of 29.76%. Given Magnera’s stronger consensus rating and higher possible upside, analysts plainly believe Magnera is more favorable than West Fraser Timber.

About Magnera

Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions propel our customers’ goals forward and solve end-users’ problems, every day.

About West Fraser Timber

West Fraser Timber Co. Ltd., a diversified wood products company, produces and sells lumber, panels, and pulp and papers in western Canada and the southern United States. It offers spruce-pine-fir, Douglas Fir-Larch, Hem-Fir tree, and southern yellow pine lumber; treated wood products; and newsprint, wood chips, and other residuals and energy products. The company also provides medium density fiberboard panels and plywood; laminated veneer lumber wood products; and northern bleached softwood Kraft pulp used to produce various paper products, including printing and writing papers, specialty grades, and various tissue products. In addition, it offers bleached chemical thermo-mechanical pulp that is used to produce coated board grades, printing and writing paper, and paper towel/napkin grades, as well as specialty papers and tissue grades. The company exports lumber to the Far East, Asia, the Caribbean, Europe, the Middle East, and South America. West Fraser Timber Co. Ltd. was founded in 1955 and is based in Vancouver, Canada.