Stella-Jones (OTCMKTS:STLJF) vs. Clearwater Paper (NYSE:CLW) Head-To-Head Contrast

Clearwater Paper (NYSE:CLW) and Stella-Jones (OTCMKTS:STLJF) are both materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Clearwater Paper and Stella-Jones’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Clearwater Paper	-3.24%	-7.95%	-4.06%
Stella-Jones	8.66%	14.92%	7.39%

Insider & Institutional Ownership

90.0% of Clearwater Paper shares are held by institutional investors. 2.4% of Clearwater Paper shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Clearwater Paper and Stella-Jones, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Clearwater Paper	1	5	2	0	2.12
Stella-Jones	0	2	2	0	2.50

Clearwater Paper currently has a consensus target price of $18.50, suggesting a potential downside of 20.60%. Given Clearwater Paper’s higher probable upside, research analysts clearly believe Clearwater Paper is more favorable than Stella-Jones.

Valuation & Earnings

This table compares Clearwater Paper and Stella-Jones”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Clearwater Paper	$1.56 billion	0.24	-$18.60 million	($3.04)	-7.66
Stella-Jones	$2.50 billion	1.20	$241.19 million	$1.47	37.37

Stella-Jones has higher revenue and earnings than Clearwater Paper. Clearwater Paper is trading at a lower price-to-earnings ratio than Stella-Jones, indicating that it is currently the more affordable of the two stocks.

Summary

Stella-Jones beats Clearwater Paper on 9 of the 12 factors compared between the two stocks.

About Clearwater Paper

Clearwater Paper Corporation manufactures and supplies bleached paperboards, and consumer and parent roll tissues in the United States and internationally. It operates through Pulp and Paperboard, and Consumer Products segments. The Pulp and Paperboard segment manufactures and markets bleached paperboard; Solid Bleached Sulfate paperboard that is used to produce folding cartons, liquid packaging, cups and plates, blister and carded packaging, and top sheet and commercial printing items; and hardwood and softwood pulp, as well as offers services that include custom sheeting, slitting, and cutting. It sells its products to carton converters, folding carton converters, merchants, and commercial printers. The Consumer Products segment provides a line of at-home tissue products, including bath tissues, paper towels, facial tissues, and napkins; recycled fiber value grade products; and away-from-home tissues. This segment sells its products to retailers, including grocery, club, mass merchants, and discount stores. The company was incorporated in 2005 and is based in Spokane, Washington.

About Stella-Jones

Stella-Jones Inc. produces and sells pressure-treated wood products in Canada and the United States. It operates through two segments, Pressure-Treated Wood; and Logs and Lumber. The company offers railway ties and timbers for short line and commercial railroad operators; and wood utility poles for electrical utilities and telecommunication companies. It also provides residential lumber and accessories to retailers for outdoor applications; industrial products, which include wood for railway bridges and crossings, marine and foundation pilings, construction timbers, and coal tar-based products; and lumber for local home-building markets. Stella-Jones Inc. was incorporated in 1992 and is headquartered in Saint-Laurent, Canada.