Sappi (OTCMKTS:SPPJY) & Interfor (OTCMKTS:IFSPF) Financial Analysis

by · The Markets Daily

Interfor (OTCMKTS:IFSPFGet Free Report) and Sappi (OTCMKTS:SPPJYGet Free Report) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Insider & Institutional Ownership

35.5% of Interfor shares are held by institutional investors. 0.7% of Sappi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Interfor and Sappi, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Interfor02302.60
Sappi01002.00

Profitability

This table compares Interfor and Sappi’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
InterforN/AN/AN/A
Sappi-12.70%-4.85%-1.82%

Earnings & Valuation

This table compares Interfor and Sappi”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
InterforN/AN/AN/A$0.8810.04
Sappi$5.42 billion0.08-$177.00 million($1.11)-0.64

Interfor has higher earnings, but lower revenue than Sappi. Sappi is trading at a lower price-to-earnings ratio than Interfor, indicating that it is currently the more affordable of the two stocks.

Summary

Interfor beats Sappi on 8 of the 10 factors compared between the two stocks.

About Interfor

(Get Free Report)

Interfor Corporation, together with its subsidiaries, produces and sells wood products in Canada, the United States, Japan, China, Taiwan, and internationally. It offers decking, fascia and board, framing, v-joint paneling, fineline paneling, and siding products, as well as appearance, structural, studs, timbers, and machine stress related products. The company also provides stock for windows and doors; supplies specialty materials; and logs and wood chips. Its products are used for residential, commercial, and industrial applications. The company was formerly known as International Forest Products Limited and changed its name to Interfor Corporation in May 2014. Interfor Corporation was incorporated in 1963 and is headquartered in Burnaby, Canada.

About Sappi

(Get Free Report)

Sappi Limited, together with its subsidiaries, engages in the provision of materials made from woodfiber-based renewable resources in Europe, North America, and South Africa. The company manufacture and sells dissolving pulp, and wood and paper pulp; graphic papers, coated and uncoated papers, and casting and release papers; and packaging and specialty papers, including packaging and specialty papers, including flexible packaging papers, label papers, functional paper packaging products, containerboards, paperboards, silicone base papers, and dye sublimation papers. It also provides biomaterials, such as valida, lignin, furfural, and sweeteners, as well as forestry products; and engages in the treasury and insurance business. The company was founded in 1936 and is headquartered in Johannesburg, South Africa.