Weyerhaeuser (NYSE:WY) and CoreSite Realty (NYSE:COR) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.
This table compares Weyerhaeuser and CoreSite Realty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Weyerhaeuser has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, CoreSite Realty has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.
Weyerhaeuser pays an annual dividend of $1.36 per share and has a dividend yield of 5.3%. CoreSite Realty pays an annual dividend of $4.40 per share and has a dividend yield of 3.9%. Weyerhaeuser pays out 115.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CoreSite Realty pays out 87.0% 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 increased its dividend for 7 consecutive years and CoreSite Realty has increased its dividend for 8 consecutive years.
Earnings & Valuation
This table compares Weyerhaeuser and CoreSite Realty’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Weyerhaeuser||$7.48 billion||2.55||$748.00 million||$1.18||21.65|
|CoreSite Realty||$544.39 million||7.72||$77.92 million||$5.06||22.50|
Weyerhaeuser has higher revenue and earnings than CoreSite Realty. Weyerhaeuser is trading at a lower price-to-earnings ratio than CoreSite Realty, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
78.0% of Weyerhaeuser shares are held by institutional investors. Comparatively, 94.4% of CoreSite Realty shares are held by institutional investors. 0.4% of Weyerhaeuser shares are held by company insiders. Comparatively, 1.2% of CoreSite Realty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a summary of current ratings for Weyerhaeuser and CoreSite Realty, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Weyerhaeuser presently has a consensus price target of $32.67, indicating a potential upside of 27.85%. CoreSite Realty has a consensus price target of $111.40, indicating a potential downside of 2.15%. Given Weyerhaeuser’s stronger consensus rating and higher possible upside, analysts clearly believe Weyerhaeuser is more favorable than CoreSite Realty.
CoreSite Realty beats Weyerhaeuser on 10 of the 17 factors compared between the two stocks.
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control 12.2 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 2018, we generated $7.5 billion in net sales and employed approximately 9,300 people who serve customers worldwide. 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 CoreSite Realty
CoreSite Realty Corporation (NYSE:COR) delivers secure, reliable, high-performance data center and interconnection solutions to a growing customer ecosystem across eight key North American markets. More than 1,350 of the world's leading enterprises, network operators, cloud providers, and supporting service providers choose CoreSite to connect, protect and optimize their performance-sensitive data, applications and computing workloads. Our scalable, flexible solutions and 450+ dedicated employees consistently deliver unmatched data center options all of which leads to a best-in-class customer experience and lasting relationships.
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