Worthington Enterprises (NYSE:WOR) versus Potlatch (NASDAQ:PCH) Financial Comparison

Worthington Enterprises (NYSE:WOR) and Potlatch (NASDAQ:PCH) are both mid-cap construction companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Dividends

Worthington Enterprises pays an annual dividend of $0.76 per share and has a dividend yield of 1.4%. Potlatch pays an annual dividend of $1.80 per share and has a dividend yield of 4.2%. Worthington Enterprises pays out 35.7% of its earnings in the form of a dividend. Potlatch pays out 339.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Worthington Enterprises and Potlatch’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worthington Enterprises	8.91%	17.70%	9.80%
Potlatch	3.94%	2.10%	1.29%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Worthington Enterprises and Potlatch, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worthington Enterprises	1	2	2	1	2.50
Potlatch	0	1	6	0	2.86

Worthington Enterprises currently has a consensus price target of $62.33, indicating a potential upside of 12.45%. Potlatch has a consensus price target of $49.83, indicating a potential upside of 16.71%. Given Potlatch’s stronger consensus rating and higher possible upside, analysts clearly believe Potlatch is more favorable than Worthington Enterprises.

Volatility and Risk

Worthington Enterprises has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Potlatch has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Insider and Institutional Ownership

51.6% of Worthington Enterprises shares are held by institutional investors. Comparatively, 86.1% of Potlatch shares are held by institutional investors. 3.4% of Worthington Enterprises shares are held by company insiders. Comparatively, 1.0% of Potlatch shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Worthington Enterprises and Potlatch”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worthington Enterprises	$1.15 billion	2.39	$96.05 million	$2.13	26.02
Potlatch	$1.06 billion	3.11	$21.88 million	$0.53	80.57

Worthington Enterprises has higher revenue and earnings than Potlatch. Worthington Enterprises is trading at a lower price-to-earnings ratio than Potlatch, indicating that it is currently the more affordable of the two stocks.

Summary

Worthington Enterprises beats Potlatch on 10 of the 17 factors compared between the two stocks.

About Worthington Enterprises

Worthington Enterprises, Inc. operates as an industrial manufacturing company. It operates through three segments: Building Products, Consumer Products, and Sustainable Energy Solutions. The Building Products segment sells refrigerant and LPG cylinders, well water and expansion tanks, fire suppression tanks, chemical tanks, and foam and adhesive tanks for gas producers, and distributors. The Consumer Products segment provides products in the tools, outdoor living, and celebrations end markets. Its products include propane-filled cylinders for torches, camping stoves and other applications, LPG cylinders, handheld torches, helium-filled balloon kits, specialized hand tools and instruments, and drywall tools and accessories This segment sells its products primarily to mass merchandisers, retailers, and distributors under the Coleman, Bernzomatic, Balloon Time, Mag-Torch, General, Garden-Weasel, Pactool International, Hawkeye, Worthington Pro Grade, and Level5 brands. The Sustainable Energy Solutions segment sells onboard fueling systems and services, as well as gas containment solutions and services for storage, transport, and distribution of industrial gases. It includes high pressure and acetylene cylinders for life support systems and alternative fuel cylinders used to hold CNG and hydrogen for automobiles, buses, and light-duty trucks. The company was formerly known as Worthington Industries, Inc. Worthington Enterprises, Inc. was founded in 1955 and is headquartered in Columbus, Ohio.

About Potlatch

PotlatchDeltic Corporation (Nasdaq: PCH) is a leading Real Estate Investment Trust (REIT) that owns nearly 2.2 million acres of timberlands in Alabama, Arkansas, Georgia, Idaho, Louisiana, Mississippi and South Carolina. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program. PotlatchDeltic, a leader in sustainable forest management, is committed to environmental and social responsibility and to responsible governance.