Critical Analysis: Hammerson (HMSNF) vs. Weyerhaeuser (WY)

Hammerson (OTCMKTS: HMSNF) and Weyerhaeuser (NYSE:WY) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Hammerson and Weyerhaeuser, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hammerson 0 4 1 0 2.20
Weyerhaeuser 0 3 5 0 2.63

Weyerhaeuser has a consensus target price of $37.63, suggesting a potential upside of 3.20%. Given Weyerhaeuser’s stronger consensus rating and higher probable upside, analysts plainly believe Weyerhaeuser is more favorable than Hammerson.

Insider & Institutional Ownership

76.1% of Weyerhaeuser shares are owned by institutional investors. 0.4% of Weyerhaeuser shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Weyerhaeuser pays an annual dividend of $1.28 per share and has a dividend yield of 3.5%. Hammerson does not pay 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 raised its dividend for 6 consecutive years.

Valuation & Earnings

This table compares Hammerson and Weyerhaeuser’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hammerson $320.69 million 17.34 N/A N/A N/A
Weyerhaeuser $7.20 billion 3.84 $582.00 million $1.15 31.70

Weyerhaeuser has higher revenue and earnings than Hammerson.

Profitability

This table compares Hammerson and Weyerhaeuser’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hammerson N/A N/A N/A
Weyerhaeuser 9.42% 10.88% 5.35%

Volatility and Risk

Hammerson has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Weyerhaeuser has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.

Summary

Weyerhaeuser beats Hammerson on 12 of the 14 factors compared between the two stocks.

Hammerson Company Profile

Hammerson is a FTSE 100 owner, manager and developer of retail destinations in Europe. Our portfolio of high-quality retail property has a value of around £10.5 billion and includes 23 prime shopping centres, 17 convenient retail parks and investments in 20 premium outlet villages, through our partnership with Value Retail and the VIA Outlets joint venture. Key investments include Bullring, Birmingham, Bicester Village, Oxfordshire, Dundrum Town Centre, Dublin and Les Terrasses du Port, Marseille.

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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