Rubicon (OTCMKTS:RUBNF) and Weyerhaeuser (NYSE:WY) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Institutional and Insider Ownership

76.8% of Weyerhaeuser shares are owned by institutional investors. 0.4% of Weyerhaeuser shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Rubicon and Weyerhaeuser, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rubicon 0 0 0 0 N/A
Weyerhaeuser 0 2 7 0 2.78

Weyerhaeuser has a consensus target price of $32.75, suggesting a potential upside of 28.28%. Given Weyerhaeuser’s higher probable upside, analysts clearly believe Weyerhaeuser is more favorable than Rubicon.

Valuation & Earnings

This table compares Rubicon and Weyerhaeuser’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rubicon N/A N/A N/A N/A N/A
Weyerhaeuser $7.48 billion 2.55 $748.00 million $1.18 21.64

Weyerhaeuser has higher revenue and earnings than Rubicon.

Dividends

Weyerhaeuser pays an annual dividend of $1.36 per share and has a dividend yield of 5.3%. Rubicon does not pay 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. Weyerhaeuser has raised its dividend for 7 consecutive years.

Profitability

This table compares Rubicon and Weyerhaeuser’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rubicon N/A N/A N/A
Weyerhaeuser 10.01% 9.80% 5.05%

Summary

Weyerhaeuser beats Rubicon on 10 of the 11 factors compared between the two stocks.

Rubicon Company Profile

Rubicon Limited invests in forestry related industries. The company engages in the forestry genetics business. It produces and sells tree seedlings with a focus on pine and eucalyptus species. The company provides its tree seedlings under the ArborGen brand name to forest land owners and managers primarily in the United States, Brazil, and Australasia. Rubicon Limited was incorporated in 2001 and is based in Auckland, New Zealand.

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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