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  • Critical review by Weyerhaeuser (NYSE: WY) and Phillips Edison & Company, Inc. (NASDAQ: PECO)

Critical review by Weyerhaeuser (NYSE: WY) and Phillips Edison & Company, Inc. (NASDAQ: PECO)

By on June 12, 2022 0

Weyerhaeuser (NYSE:WYGet a rating) and Phillips Edison & Company, Inc. (NASDAQ: CEEGet a rating) are both construction companies, but which is the better move? We’ll compare the two companies based on their risk strength, dividends, profitability, earnings, valuation, institutional ownership, and analyst recommendations.

Institutional and insider ownership

82.4% of Weyerhaeuser shares are held by institutional investors. By comparison, 36.6% of Phillips Edison & Company, Inc. stock is held by institutional investors. 0.2% of Weyerhaeuser shares are held by insiders. By comparison, 7.9% of Phillips Edison & Company, Inc. stock is held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.

Benefits and evaluation

This table compares gross revenue, earnings per share, and valuation of Weyerhaeuser and Phillips Edison & Company, Inc.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Weyerhaeuser $10.20 billion 2.61 $2.61 billion $3.59 9.98
Phillips Edison & Company, Inc. $532.85 million 7.04 $15.12 million $0.23 143.87

Weyerhaeuser has higher revenue and earnings than Phillips Edison & Company, Inc. Weyerhaeuser trades at a lower price-to-earnings ratio than Phillips Edison & Company, Inc., indicating that it is currently the most affordable of two actions.

Profitability

This table compares the net margins, return on equity, and return on assets of Weyerhaeuser and Phillips Edison & Company, Inc.

Net margins Return on equity return on assets
Weyerhaeuser 24.96% 27.03% 15.97%
Phillips Edison & Company, Inc. 4.61% 1.06% 0.55%

Dividends

Weyerhaeuser pays an annual dividend of $0.72 per share and has a dividend yield of 2.0%. Phillips Edison & Company, Inc. pays an annual dividend of $1.08 per share and has a dividend yield of 3.3%. Weyerhaeuser pays 20.1% of its profits as a dividend. Phillips Edison & Company, Inc. pays out 469.6% of its earnings as a dividend, suggesting it may not have enough earnings to cover its dividend payment in the future. Weyerhaeuser has increased its dividend for 1 consecutive years.

Analyst Notes

This is a summary of recent ratings and price targets for Weyerhaeuser and Phillips Edison & Company, Inc., as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Weyerhaeuser 0 1 2 1 3.00
Phillips Edison & Company, Inc. 0 6 4 0 2.40

Weyerhaeuser currently has a consensus price target of $43.25, indicating a potential upside of 20.71%. Phillips Edison & Company, Inc. has a consensus price target of $34.44, indicating a potential upside of 4.07%. Given Weyerhaeuser’s stronger consensus rating and higher possible upside, stock analysts clearly believe Weyerhaeuser is more favorable than Phillips Edison & Company, Inc..

Summary

Weyerhaeuser beats Phillips Edison & Company, Inc. on 12 of 17 factors compared between the two stocks.

About Weyerhaeuser (Get a rating)

Weyerhaeuser Company, one of the largest private owners of forest land in the world, began operations in 1900. We own or control approximately 11 million acres of forest land in the United States and manage additional forest land under long-term licenses in Canada. We manage these forest lands on a sustainable basis in accordance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2020, we generated $7.5 billion in net sales and employed approximately 9,400 people who serve customers around the world. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY.

About Phillips Edison & Company, Inc. (Get a rating)

Phillips Edison & Company, Inc. (PECO), an internally managed REIT, is one of the largest owners and operators of grocery-anchored shopping centers in the nation. PECO’s diverse portfolio of busy neighborhood malls includes a mix of national and regional retailers selling essential goods and services in fundamentally strong markets across the United States. Through its vertically integrated operating platform, the Company manages a portfolio of 309 properties, including 283 wholly-owned properties representing approximately 31.7 million square feet in 31 states (as of September 30, 2020). PECO has generated strong operating results over its more than 29-year history and has partnered with leading institutional commercial real estate investors including TPG Real Estate and The Northwestern Mutual Life Insurance Company. The company remains exclusively focused on creating shopping experiences rooted in the grocery store and improving the communities it serves, one center at a time.



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