Comparing West Fraser Timber (NYSE:WFG) & Orchids Paper Products (OTCMKTS:TISUQ)

Orchids Paper Products (OTCMKTS:TISUQ) and West Fraser Timber (NYSE:WFG) are both materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Earnings and Valuation

This table compares Orchids Paper Products and West Fraser Timber”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orchids Paper Products	N/A	N/A	N/A	N/A	N/A
West Fraser Timber	$5.24 billion	1.03	-$937.00 million	($15.44)	-4.45

Orchids Paper Products has higher earnings, but lower revenue than West Fraser Timber.

Profitability

This table compares Orchids Paper Products and West Fraser Timber’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orchids Paper Products	N/A	N/A	N/A
West Fraser Timber	-22.98%	-10.84%	-8.19%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Orchids Paper Products and West Fraser Timber, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orchids Paper Products	0	0	0	0	0.00
West Fraser Timber	1	3	4	0	2.38

West Fraser Timber has a consensus target price of $83.20, indicating a potential upside of 21.23%. Given West Fraser Timber’s stronger consensus rating and higher possible upside, analysts plainly believe West Fraser Timber is more favorable than Orchids Paper Products.

Institutional & Insider Ownership

40.2% of West Fraser Timber shares are held by institutional investors. 11.4% of Orchids Paper Products shares are held by company insiders. Comparatively, 1.8% of West Fraser Timber shares are held by company insiders. 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.

Summary

West Fraser Timber beats Orchids Paper Products on 5 of the 9 factors compared between the two stocks.

About Orchids Paper Products

Orchids Paper Products Company is a tissue paper company that manufacturers and converts tissue product for the private label consumer market.

About West Fraser Timber

West Fraser Timber Co. Ltd., a diversified wood products company, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals and renewable energy. It offers spruce-pine-fir, douglas fir-larch, hem-fir, and southern yellow pine lumber, treated wood products, medium density fiberboard panels and plywood, oriented strand board, and laminated veneer lumber wood products, as well as particleboards. The company also provides northern bleached softwood Kraft pulp and bleached chemical thermo-mechanical pulp used to produce various paper products, including printing and writing papers, paperboard products, tissue and towel products, and a variety of other paper grades. Further, it offers bioproducts, including bioenergy and biomaterial. Its products are used in home construction, repair and remodeling, papers, tissue, and box materials, and industrial applications. The company sells its products to major retail chains, contractor supply yards, and wholesalers, as well as industrial customers for further processing or as components for other products in Canada, the United States, the United Kingdom, Europe, and internationally. West Fraser Timber Co. Ltd. was founded in 1955 and is headquartered in Vancouver, Canada.