Head-To-Head Survey: Rayonier (RYN) & Its Peers

Rayonier (NYSE:RYN) is one of 35 publicly-traded companies in the “Specialized REITs” industry, but how does it weigh in compared to its competitors? We will compare Rayonier to similar businesses based on the strength of its dividends, profitability, risk, institutional ownership, analyst recommendations, valuation and earnings.

Profitability

This table compares Rayonier and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rayonier	11.49%	2.69%	1.86%
Rayonier Competitors	-4.53%	-3.15%	2.03%

Volatility and Risk

Rayonier has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Rayonier’s competitors have a beta of 0.92, indicating that their average share price is 8% less volatile than the S&P 500.

Valuation & Earnings

This table compares Rayonier and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rayonier	$484.50 million	$474.38 million	37.08
Rayonier Competitors	$2.58 billion	$596.00 million	31.74

Rayonier’s competitors have higher revenue and earnings than Rayonier. Rayonier is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Rayonier pays an annual dividend of $1.04 per share and has a dividend yield of 4.8%. Rayonier pays out 179.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Specialized REITs” companies pay a dividend yield of 3.3% and pay out 119.5% of their earnings in the form of a dividend.

Insider and Institutional Ownership

89.1% of Rayonier shares are held by institutional investors. Comparatively, 78.0% of shares of all “Specialized REITs” companies are held by institutional investors. 0.9% of Rayonier shares are held by insiders. Comparatively, 7.5% of shares of all “Specialized REITs” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for Rayonier and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rayonier	1	4	0	1	2.17
Rayonier Competitors	523	2790	3673	191	2.49

Rayonier currently has a consensus price target of $24.00, indicating a potential upside of 11.60%. As a group, “Specialized REITs” companies have a potential upside of 12.66%. Given Rayonier’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Rayonier has less favorable growth aspects than its competitors.

Summary

Rayonier competitors beat Rayonier on 9 of the 15 factors compared.

Rayonier Company Profile

Rayonier is a real estate investment trust focused on owning and managing timberlands in the United States. Its portfolio includes forestland in the U.S. South and Pacific Northwest, where the company grows and harvests timber. The company sells logs and other wood products to customers in industries such as lumber, pulp and paper. It also generates revenue by selling land for uses including real estate development, recreation and conservation. Rayonier traces its roots to 1926, when Rainier Pulp and Paper Company was established in Washington state.