Acadian Timber (OTCMKTS:ACAZF) versus Sappi (OTCMKTS:SPPJY) Critical Analysis

Sappi (OTCMKTS:SPPJY) and Acadian Timber (OTCMKTS:ACAZF) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Valuation and Earnings

This table compares Sappi and Acadian Timber”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sappi	$5.42 billion	0.10	-$177.00 million	($1.36)	-0.69
Acadian Timber	N/A	N/A	N/A	$0.49	25.66

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

Profitability

This table compares Sappi and Acadian Timber’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sappi	-15.44%	-6.12%	-2.26%
Acadian Timber	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sappi and Acadian Timber, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sappi	0	1	0	0	2.00
Acadian Timber	0	0	1	0	3.00

Institutional and Insider Ownership

57.3% of Acadian Timber shares are owned by institutional investors. 0.7% of Sappi shares are owned by company 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.

Summary

Acadian Timber beats Sappi on 8 of the 10 factors compared between the two stocks.

About Sappi

Sappi Limited, together with its subsidiaries, engages in the provision of materials made from woodfiber-based renewable resources in Europe, North America, and South Africa. The company manufacture and sells dissolving pulp, and wood and paper pulp; graphic papers, coated and uncoated papers, and casting and release papers; and packaging and specialty papers, including packaging and specialty papers, including flexible packaging papers, label papers, functional paper packaging products, containerboards, paperboards, silicone base papers, and dye sublimation papers. It also provides biomaterials, such as valida, lignin, furfural, and sweeteners, as well as forestry products; and engages in the treasury and insurance business. The company was founded in 1936 and is headquartered in Johannesburg, South Africa.

About Acadian Timber

Acadian Timber Corp. supplies primary forest products in Eastern Canada and the Northeastern United States. The company operates in two segments, NB Timberlands and Maine Timberlands. Its products include softwood and hardwood sawlogs, pulpwood, and biomass by-products. The company owns and manages freehold timberlands in New Brunswick and Maine; and provides timber services relating to Crown licensed timberlands in New Brunswick. Acadian Timber Corp. was founded in 2006 and is headquartered in Edmundston, Canada.