Comparing Rayonier (RYN) & Catchmark Timber Trust (CTT)
Rayonier (NYSE: RYN) and Catchmark Timber Trust (NYSE:CTT) are both construction companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
Earnings and Valuation
This table compares Rayonier and Catchmark Timber Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rayonier||$788.30 million||5.11||$211.97 million||$1.05||29.75|
|Catchmark Timber Trust||$81.86 million||6.87||-$11.07 million||($0.35)||-37.00|
Rayonier pays an annual dividend of $1.00 per share and has a dividend yield of 3.2%. Catchmark Timber Trust pays an annual dividend of $0.54 per share and has a dividend yield of 4.2%. Rayonier pays out 95.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Catchmark Timber Trust pays out -154.3% of its earnings in the form of a dividend. Rayonier has increased its dividend for 2 consecutive years. Catchmark Timber Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Rayonier and Catchmark Timber Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Catchmark Timber Trust||-15.09%||-3.64%||-1.90%|
Institutional and Insider Ownership
83.4% of Rayonier shares are owned by institutional investors. Comparatively, 63.7% of Catchmark Timber Trust shares are owned by institutional investors. 0.6% of Rayonier shares are owned by insiders. Comparatively, 1.2% of Catchmark Timber Trust shares are owned by insiders. 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.
Volatility & Risk
Rayonier has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Catchmark Timber Trust has a beta of 0.69, meaning that its stock price is 31% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Rayonier and Catchmark Timber Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Catchmark Timber Trust||0||0||2||0||3.00|
Rayonier currently has a consensus price target of $30.00, indicating a potential downside of 3.97%. Catchmark Timber Trust has a consensus price target of $12.50, indicating a potential downside of 3.47%. Given Catchmark Timber Trust’s stronger consensus rating and higher probable upside, analysts clearly believe Catchmark Timber Trust is more favorable than Rayonier.
Rayonier beats Catchmark Timber Trust on 8 of the 15 factors compared between the two stocks.
Rayonier Inc. is a timberland real estate investment trust with assets located in some of the timber growing regions in the United States and New Zealand. The Company operates through five segments: Southern Timber, Pacific Northwest Timber, New Zealand Timber, Real Estate and Trading. The Southern Timber, Pacific Northwest Timber and New Zealand Timber segments reflect all activities related to the harvesting of timber and other activities, such as recreational leases, within each respective geography. Its New Zealand Timber segment also reflects land sales that occur within its New Zealand portfolio. Its Real Estate segment reflects the United States land sales. Its Trading segment reflects the log trading activities that support its New Zealand operations. It owned, leased or managed approximately 2.7 million acres of timberlands, as of December 31, 2016. It is engaged in the trading of logs from New Zealand and Australia to Pacific Rim markets.
About Catchmark Timber Trust
CatchMark Timber Trust, Inc. is a real estate company investing in timberlands. The Company primarily engages in the ownership, management, acquisition and disposition of timberlands located in the United States. It is focused on investing in timberlands and to manage such assets to provide current income and attractive long-term returns to its stockholders. It owns all its properties and other investments through its operating partnership. The Company generates its income from the harvest and sale of timber, as well as from non-timber related revenue sources, such as recreational leases. In April 2014, the Company acquired 36,300 acres of timberland (known as the Waycross-Panola properties) located in Southeast Georgia and East Texas from Hancock Timber Resource Group. Approximately 55,600 acres of prime timberlands, known as Oglethorpe and Satilla River, add 2.7 million tons of timber to the Company’s merchantable inventory.
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