Head-To-Head Review: Klabin (OTCMKTS:KLBAY) and Canfor (OTCMKTS:CFPZF)

Klabin (OTCMKTS:KLBAY) and Canfor (OTCMKTS:CFPZF) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares Klabin and Canfor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Klabin	$3.71 billion	6.21	$251.30 million	$0.17	43.35
Canfor	N/A	N/A	N/A	$1.25	8.38

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

Profitability

This table compares Klabin and Canfor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Klabin	1.26%	1.79%	0.43%
Canfor	N/A	N/A	N/A

Insider and Institutional Ownership

39.7% of Canfor shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Klabin and Canfor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Klabin	1	1	0	1	2.33
Canfor	0	4	2	0	2.33

Summary

Klabin beats Canfor on 6 of the 9 factors compared between the two stocks.

About Klabin

Klabin S.A., together with its subsidiaries, produces and exports packaging paper and sustainable paper packaging solutions in Brazil and internationally. The company engages in the planting of pine and eucalyptus; and forestry management business. It also produces and sells hardwood (eucalyptus), softwood (pine), and fluffed pulp; and paperboard, sackraft, Kraftliner paper, and recycled paper. In addition, the company offers industrial bags, corrugated boxes, and other packaging products. Klabin S.A. was founded in 1899 and is headquartered in São Paulo, Brazil.

About Canfor

Canfor Corporation operates as an integrated forest products company in the United States, Asia, Canada, Europe, and internationally. It operates in two segments, Lumber, and Pulp and Paper. The company manufactures and sells softwood lumber, remanufactured lumber products, engineered wood, and other lumber-related products, as well as wood chips and pellets; and generates green energy. It also offers dimension lumber products, such as spruce pine fir, southern yellow pine, Douglas fir larch, and Canfor red; specialty lumber products, including Balfour boards, WynnWood board, decking/fascia, lamstock, long lengths, shop/clear, and access mat lumber; and pulp and paper products comprising bleached and unbleached softwood kraft pulp, as well as bleached, colored, and unbleached kraft paper. The company was founded in 1938 and is headquartered in Vancouver, Canada.