Resolute Forest Products (NYSE:RFP) and Suzano (NYSE:SUZ) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, dividends, earnings and profitability.
Earnings & Valuation
This table compares Resolute Forest Products and Suzano’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Resolute Forest Products||$3.76 billion||0.11||$235.00 million||N/A||N/A|
|Suzano||$3.68 billion||2.37||$87.47 million||N/A||N/A|
This table compares Resolute Forest Products and Suzano’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Resolute Forest Products||6.37%||8.64%||3.61%|
This is a breakdown of recent ratings for Resolute Forest Products and Suzano, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Resolute Forest Products||0||2||1||0||2.33|
Resolute Forest Products currently has a consensus price target of $10.00, suggesting a potential upside of 112.31%. Given Resolute Forest Products’ stronger consensus rating and higher possible upside, analysts plainly believe Resolute Forest Products is more favorable than Suzano.
Insider & Institutional Ownership
88.0% of Resolute Forest Products shares are held by institutional investors. Comparatively, 1.0% of Suzano shares are held by institutional investors. 1.6% of Resolute Forest Products shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Suzano pays an annual dividend of $0.21 per share and has a dividend yield of 1.3%. Resolute Forest Products does not pay a dividend.
Resolute Forest Products beats Suzano on 10 of the 12 factors compared between the two stocks.
About Resolute Forest Products
Resolute Forest Products Inc. operates in the forest products industry in the United States, Canada, Mexico, and internationally. The company operates through five segments: Market Pulp, Tissue, Wood Products, Newsprint, and Specialty Papers. The Market Pulp segment offers virgin and recycled bleached Kraft used to make a range of consumer products, including tissue, packaging, specialty paper products, diapers, and other absorbent products. The Tissue segment provides tissue products, such as recycled and virgin paper products for the away-from-home and at-home markets; and sells parent rolls. The Wood Products segment produces construction-grade and spruce-pine-fir lumber products, bed frame components, finger joints, and furring strips, as well as I-joists for the construction industry. The Newsprint segment offers newsprint to newspaper publishers worldwide, as well as to commercial printers in North America for a range of uses comprising inserts and flyers. The Specialty Papers segment offers various specialty papers, including uncoated mechanical papers, such as supercalendered and white papers, as well as uncoated freesheet papers. Its specialty papers are used in books, retail inserts, direct mail, coupons, magazines, catalogs, bags, and other commercial printing applications. This segment sells specialty papers to commercial printers, direct mailers, publishers, catalogers, and retailers. The company also produces electricity at six cogeneration facilities and seven hydroelectric dams. Resolute Forest Products Inc. is headquartered in Montreal, Canada.
Suzano S.A. produces and sells eucalyptus pulp and paper products in Brazil and internationally. The company offers coated and uncoated printing and writing papers, paperboards, tissue paper, market pulp, and fluff pulp; and lignin and its byproducts. It also engages in the plant genetic research and development for forestry, biopower, and biofuel industries. In addition, the company owns a hydroelectric plant located in the cities of Carlos Chagas and Pavão. Further, it operates a forestry base of approximately 1.2 million hectares comprising 520,000 hectares of planted forests in the states of Bahia, Espírito Santo, São Paulo, Minas Gerais, Maranhão, Tocantins, Pará, and Piauí, as well as approximately 488,000 hectares of preservation areas. The company was formerly known as Suzano Papel e Celulose S.A. and changed its name to Suzano S.A. in April 2019. The company was founded in 1924 and is headquartered in Salvador, Brazil. Suzano S.A. is a subsidiary of Suzano Holding S.A.
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