Critical Contrast: Interfor (OTCMKTS:IFSPF) versus West Fraser Timber (NYSE:WFG)

Interfor (OTCMKTS:IFSPF) and West Fraser Timber (NYSE:WFG) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Interfor	N/A	N/A	N/A
West Fraser Timber	2.23%	3.83%	2.95%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Interfor and West Fraser Timber, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interfor	0	1	0	0	2.00
West Fraser Timber	0	0	4	1	3.20

West Fraser Timber has a consensus price target of $105.60, suggesting a potential upside of 11.78%. Given West Fraser Timber’s stronger consensus rating and higher probable upside, analysts plainly believe West Fraser Timber is more favorable than Interfor.

Earnings & Valuation

This table compares Interfor 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
Interfor	N/A	N/A	N/A	$0.88	16.56
West Fraser Timber	$6.55 billion	1.14	-$167.00 million	($1.21)	-78.07

Interfor has higher earnings, but lower revenue than West Fraser Timber. West Fraser Timber is trading at a lower price-to-earnings ratio than Interfor, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

35.5% of Interfor shares are held by institutional investors. Comparatively, 40.2% of West Fraser Timber shares are held by institutional investors. 1.8% of West Fraser Timber shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

West Fraser Timber beats Interfor on 10 of the 12 factors compared between the two stocks.

About Interfor

Interfor Corporation, together with its subsidiaries, produces and sells wood products in Canada, the United States, Japan, China, Taiwan, and internationally. It offers decking, fascia and board, framing, v-joint paneling, fineline paneling, and siding products, as well as appearance, structural, studs, timbers, and machine stress related products. The company also provides stock for windows and doors; supplies specialty materials; and logs and wood chips. Its products are used for residential, commercial, and industrial applications. The company was formerly known as International Forest Products Limited and changed its name to Interfor Corporation in May 2014. Interfor Corporation was incorporated in 1963 and is headquartered in Burnaby, Canada.

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.