Reviewing Resolute Forest Products (ABH) and Resolute Forest Products (RFP)

Resolute Forest Products (NYSE: ABH) and Resolute Forest Products (NYSE:RFP) are both small-cap newsprint mills companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Insider & Institutional Ownership

87.5% of Resolute Forest Products shares are owned by institutional investors. 1.1% of Resolute Forest Products shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Resolute Forest Products and Resolute Forest Products’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Resolute Forest Products N/A N/A N/A ($1.58) -5.63
Resolute Forest Products $3.55 billion 0.23 -$81.00 million ($1.58) -5.63

Resolute Forest Products has higher revenue, but lower earnings than Resolute Forest Products.

Profitability

This table compares Resolute Forest Products and Resolute Forest Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Resolute Forest Products 2.94% 6.02% 2.48%
Resolute Forest Products -4.05% -0.30% -0.12%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Resolute Forest Products and Resolute Forest Products, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Resolute Forest Products 0 0 0 0 N/A
Resolute Forest Products 1 2 1 0 2.00

Resolute Forest Products has a consensus target price of $7.58, indicating a potential downside of 14.79%. Given Resolute Forest Products’ higher probable upside, analysts clearly believe Resolute Forest Products is more favorable than Resolute Forest Products.

Volatility & Risk

Resolute Forest Products has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Resolute Forest Products has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Summary

Resolute Forest Products beats Resolute Forest Products on 5 of the 8 factors compared between the two stocks.

About Resolute Forest Products

Resolute Forest Products Inc. operates in the forest products industry. It offers a range of forest products, including market pulp, tissue, wood products, newsprint and specialty papers. As of December 31, 2016, it owned or operated over 40 pulp, paper, tissue and wood products facilities in the United States and Canada. Its segments include market pulp, tissue, wood products, newsprint and specialty papers. As of December 31, 2016, it produced market pulp at seven facilities in North America, with total capacity of approximately 1.7 million metric tons. As of December 31, 2016, it produced tissue products at two facilities in North America, both located in Florida. As of December 31, 2016, it operated 16 sawmills in Canada that produces construction-grade lumber sold in North America, on the east coast. As of December 31, 2016, it produced newsprint at 10 facilities in North America. As of December 31, 2016, it produced specialty papers at five facilities in North America.

About Resolute Forest Products

Resolute Forest Products Inc. operates in the forest products industry. It offers a range of forest products, including market pulp, tissue, wood products, newsprint and specialty papers. As of December 31, 2016, it owned or operated over 40 pulp, paper, tissue and wood products facilities in the United States and Canada. Its segments include market pulp, tissue, wood products, newsprint and specialty papers. As of December 31, 2016, it produced market pulp at seven facilities in North America, with total capacity of approximately 1.7 million metric tons. As of December 31, 2016, it produced tissue products at two facilities in North America, both located in Florida. As of December 31, 2016, it operated 16 sawmills in Canada that produces construction-grade lumber sold in North America, on the east coast. As of December 31, 2016, it produced newsprint at 10 facilities in North America. As of December 31, 2016, it produced specialty papers at five facilities in North America.

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