Enviva (NYSE:EVA) & Acadian Timber (OTCMKTS:ACAZF) Head-To-Head Review

Enviva (NYSE:EVA) and Acadian Timber (OTCMKTS:ACAZF) are both construction companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, risk and dividends.

Profitability

This table compares Enviva and Acadian Timber’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enviva	-29.65%	-104.81%	-10.10%
Acadian Timber	N/A	N/A	N/A

Dividends

Enviva pays an annual dividend of $3.62 per share and has a dividend yield of 677.8%. Acadian Timber pays an annual dividend of $0.83 per share and has a dividend yield of 6.3%. Enviva pays out -74.0% of its earnings in the form of a dividend. Acadian Timber pays out 168.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Enviva is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Enviva and Acadian Timber’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enviva	$1.13 billion	0.04	-$168.31 million	($4.89)	-0.11
Acadian Timber	N/A	N/A	N/A	$0.49	26.92

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

Insider & Institutional Ownership

77.8% of Enviva shares are owned by institutional investors. Comparatively, 57.3% of Acadian Timber shares are owned by institutional investors. 54.1% of Enviva shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Enviva and Acadian Timber, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enviva	2	3	0	0	1.60
Acadian Timber	0	0	1	0	3.00

Enviva currently has a consensus price target of $7.50, indicating a potential upside of 1,304.23%. Acadian Timber has a consensus price target of $17.50, indicating a potential upside of 32.68%. Given Enviva’s higher probable upside, equities analysts clearly believe Enviva is more favorable than Acadian Timber.

Summary

Acadian Timber beats Enviva on 7 of the 13 factors compared between the two stocks.

About Enviva

Enviva Inc. produces, processes, and sells utility-grade wood pellets. The company's products are used as a substitute for coal in power generation, and combined heat and power plants. It serves power generators in the United Kingdom, European Union, and Japan. DS: The company was formerly known as Enviva Partners, LP and changed its name to Enviva Inc. in December 2021. Enviva Inc. was incorporated in 2013 and is headquartered in Bethesda, Maryland. On March 12, 2024, Enviva Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Virginia.

About Acadian Timber

Acadian Timber Corp. supplies primary forest products in Eastern Canada and the Northeastern United States. The company operates in two segments, NB Timberlands and Maine Timberlands. Its products include softwood and hardwood sawlogs, pulpwood, and biomass by-products. The company owns and manages freehold timberlands in New Brunswick and Maine; and provides timber services relating to Crown licensed timberlands in New Brunswick. Acadian Timber Corp. was founded in 2006 and is headquartered in Edmundston, Canada.