Analyzing Suzano (NYSE:SUZ) & Acadian Timber (OTCMKTS:ACAZF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Suzano	22.90%	25.25%	6.94%
Acadian Timber	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for Suzano and Acadian Timber, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suzano	0	3	1	0	2.25
Acadian Timber	0	0	1	0	3.00

Suzano currently has a consensus target price of $12.20, indicating a potential upside of 52.31%. Given Suzano’s higher possible upside, research analysts plainly believe Suzano is more favorable than Acadian Timber.

Valuation & Earnings

This table compares Suzano 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
Suzano	$8.97 billion	1.11	$2.40 billion	$1.68	4.77
Acadian Timber	N/A	N/A	N/A	$0.49	25.64

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

Dividends

Suzano pays an annual dividend of $0.18 per share and has a dividend yield of 2.2%. Acadian Timber pays an annual dividend of $0.82 per share and has a dividend yield of 6.6%. Suzano pays out 10.7% of its earnings in the form of a dividend. Acadian Timber pays out 168.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

2.5% of Suzano shares are owned by institutional investors. Comparatively, 57.3% of Acadian Timber shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Suzano beats Acadian Timber on 7 of the 11 factors compared between the two stocks.

About Suzano

Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. It operates through Pulp and Paper segments. The company offers coated and uncoated printing and writing papers, paperboards, tissue papers, and market and fluff pulps; and lignin. It also engages in the research, development, and production of biofuel; operation of port terminals; power generation and distribution business; commercialization of equipment and parts; industrialization, commercialization, and exporting of pulp and standing wood; road freight transport; biotechnology research and development; and commercialization of paper and computer materials. In addition, the company is involved in the business office, production packaging, and financial fundraising activities; research, development, production, commercialization, and distribution of wood-based textile fibers, yarns, and filaments produced from cellulose and microfibrillated cellulose; and research and development of wood raw materials for the textile industry. Suzano S.A. was formerly known as Suzano Papel e Celulose S.A. and changed its name to Suzano S.A. in April 2019. The company was founded in 1924 and is headquartered in Salvador, Brazil.

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.