Analyzing Weyerhaeuser (WY) & Pennsylvania Real Estate Investment Trust (PEI)

Pennsylvania Real Estate Investment Trust (NYSE: PEI) and Weyerhaeuser (NYSE:WY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Pennsylvania Real Estate Investment Trust and Weyerhaeuser, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Pennsylvania Real Estate Investment Trust 2 5 0 0 1.71
Weyerhaeuser 0 3 5 0 2.63

Pennsylvania Real Estate Investment Trust currently has a consensus target price of $10.58, indicating a potential upside of 4.89%. Weyerhaeuser has a consensus target price of $37.63, indicating a potential upside of 1.39%. Given Pennsylvania Real Estate Investment Trust’s higher possible upside, analysts plainly believe Pennsylvania Real Estate Investment Trust is more favorable than Weyerhaeuser.

Valuation and Earnings

This table compares Pennsylvania Real Estate Investment Trust and Weyerhaeuser’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Pennsylvania Real Estate Investment Trust $367.49 million 1.93 -$29.34 million $1.67 6.04
Weyerhaeuser $7.20 billion 3.90 $582.00 million $1.15 32.27

Weyerhaeuser has higher revenue and earnings than Pennsylvania Real Estate Investment Trust. Pennsylvania Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Pennsylvania Real Estate Investment Trust and Weyerhaeuser’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Pennsylvania Real Estate Investment Trust -8.84% -4.08% -1.25%
Weyerhaeuser 9.42% 10.88% 5.35%

Insider & Institutional Ownership

97.9% of Pennsylvania Real Estate Investment Trust shares are held by institutional investors. Comparatively, 76.1% of Weyerhaeuser shares are held by institutional investors. 4.7% of Pennsylvania Real Estate Investment Trust shares are held by company insiders. Comparatively, 0.4% of Weyerhaeuser shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Pennsylvania Real Estate Investment Trust pays an annual dividend of $0.84 per share and has a dividend yield of 8.3%. Weyerhaeuser pays an annual dividend of $1.28 per share and has a dividend yield of 3.4%. Pennsylvania Real Estate Investment Trust pays out 50.3% of its earnings in the form of a dividend. Weyerhaeuser pays out 111.3% 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 6 consecutive years. Pennsylvania Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

Pennsylvania Real Estate Investment Trust has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Summary

Weyerhaeuser beats Pennsylvania Real Estate Investment Trust on 11 of the 17 factors compared between the two stocks.

Pennsylvania Real Estate Investment Trust Company Profile

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely populated eastern U.S. with concentrations in the mid-Atlantic's top MSAs. Since 2012, the company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures. Additional information is available at www.preit.com or on Twitter or LinkedIn.

Weyerhaeuser Company Profile

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control 12.4 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 February 2016, we merged with Plum Creek Timber Company, Inc. In 2017, we generated $7.2 billion in net sales and employed approximately 9,300 people who serve customers worldwide. We are listed on the North American and World Dow Jones Sustainability Indices. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

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