Rayonier vs Weyerhaeuser Which Is More Profitable?

Rayonier and Weyerhaeuser are two prominent companies in the forestry and timber industry that investors often compare when looking to invest in this sector. Rayonier focuses on managing and growing timberlands, while Weyerhaeuser is a leading integrated forest products company. Both companies have a strong presence in the industry and offer potential for growth and profitability. Investors often analyze the performance of Rayonier and Weyerhaeuser stocks to make informed investment decisions in the forestry sector.

Rayonier or Weyerhaeuser?

When comparing Rayonier and Weyerhaeuser, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Rayonier and Weyerhaeuser.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Rayonier has a dividend yield of 4.64%, while Weyerhaeuser has a dividend yield of 3.09%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Rayonier reports a 5-year dividend growth of 4.80% year and a payout ratio of 126.14%. On the other hand, Weyerhaeuser reports a 5-year dividend growth of 4.69% year and a payout ratio of 127.15%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Rayonier P/E ratio at 27.04 and Weyerhaeuser's P/E ratio at 41.42. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Rayonier P/B ratio is 2.41 while Weyerhaeuser's P/B ratio is 2.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Rayonier has seen a 5-year revenue growth of 0.13%, while Weyerhaeuser's is 0.06%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Rayonier's ROE at 8.73% and Weyerhaeuser's ROE at 5.31%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $28.84 for Rayonier and $30.38 for Weyerhaeuser. Over the past year, Rayonier's prices ranged from $27.40 to $35.29, with a yearly change of 28.80%. Weyerhaeuser's prices fluctuated between $26.73 and $36.27, with a yearly change of 35.69%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.