Critical Contrast: Weyerhaeuser (WY) and Klepierre (OTCMKTS:KLPEF)

Weyerhaeuser (NYSE:WY) and Klepierre (OTCMKTS:KLPEF) are both large-cap construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, institutional ownership, risk, analyst recommendations and profitability.

Dividends

Weyerhaeuser pays an annual dividend of $1.36 per share and has a dividend yield of 5.6%. Klepierre 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 increased its dividend for 7 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Weyerhaeuser 2.62% 7.69% 3.99%
Klepierre N/A N/A N/A

Insider & Institutional Ownership

77.9% of Weyerhaeuser shares are held by institutional investors. 0.4% of Weyerhaeuser shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Weyerhaeuser and Klepierre’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weyerhaeuser $7.48 billion 2.43 $748.00 million $1.18 20.64
Klepierre $1.32 billion 8.56 $990.74 million N/A N/A

Klepierre has lower revenue, but higher earnings than Weyerhaeuser.

Volatility & Risk

Weyerhaeuser has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Klepierre has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Weyerhaeuser and Klepierre, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weyerhaeuser 0 2 8 0 2.80
Klepierre 0 1 0 0 2.00

Weyerhaeuser currently has a consensus price target of $32.67, suggesting a potential upside of 34.15%. Given Weyerhaeuser’s stronger consensus rating and higher probable upside, analysts plainly believe Weyerhaeuser is more favorable than Klepierre.

Summary

Weyerhaeuser beats Klepierre on 12 of the 15 factors compared between the two stocks.

About Weyerhaeuser

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.

About Klepierre

Klépierre, the pan-European leader in shopping malls, combines development, property and asset management skills. The company's portfolio is valued at €24.4 billion at December 31, 2018 and comprises large shopping centers in 16 countries in Continental Europe which together host 1.1 billion visitors per year. Klépierre holds a controlling stake in Steen & Strøm (56.1%), Scandinavia's number one shopping center owner and manager. Klépierre is a French REIT (SIIC) listed on Euronext Paris and included in the CAC Next 20, EPRA Euro Zone and GPR 250 indexes. It is also included in ethical indexes, such as DJSI World and Europe, FTSE4Good, STOXX® Global ESG Leaders, Euronext Vigeo France 20 and World 120, and figures in CDP's “A-list”. These distinctions underscore the Group's commitment to a proactive sustainable development policy and its global leadership in the fight against climate change.

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