Analyzing Svenska Cellulosa Aktiebolaget SCA (publ) (OTC:SCABY) & Trex (NYSE:TREX)

Svenska Cellulosa Aktiebolaget SCA (publ) (OTC:SCABYGet Rating) and Trex (NYSE:TREXGet Rating) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Earnings & Valuation

This table compares Svenska Cellulosa Aktiebolaget SCA (publ) and Trex’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Svenska Cellulosa Aktiebolaget SCA (publ) N/A N/A N/A N/A N/A
Trex $1.20 billion 6.22 $208.74 million $2.01 32.70

Trex has higher revenue and earnings than Svenska Cellulosa Aktiebolaget SCA (publ).

Institutional and Insider Ownership

93.6% of Trex shares are owned by institutional investors. 0.6% of Trex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Svenska Cellulosa Aktiebolaget SCA (publ) and Trex, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Svenska Cellulosa Aktiebolaget SCA (publ) 0 0 0 0 N/A
Trex 2 10 4 0 2.13

Trex has a consensus price target of $89.12, suggesting a potential upside of 35.60%. Given Trex’s higher probable upside, analysts plainly believe Trex is more favorable than Svenska Cellulosa Aktiebolaget SCA (publ).

Profitability

This table compares Svenska Cellulosa Aktiebolaget SCA (publ) and Trex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Svenska Cellulosa Aktiebolaget SCA (publ) N/A N/A N/A
Trex 17.90% 38.31% 28.80%

Summary

Trex beats Svenska Cellulosa Aktiebolaget SCA (publ) on 8 of the 8 factors compared between the two stocks.

About Svenska Cellulosa Aktiebolaget SCA (publ) (Get Rating)

Svenska Cellulosa Aktiebolaget SCA (publ), a forest products company, develops, produces, and sells forest, wood, pulp, and containerboard products. The company offers various wood products, industrial components, standard wood products, and raw materials, as well as logistic, warehouse, and IT solutions for the wood industry. It also provides pulp products under the Pure, Star, and Cirrus names; and Kraftliner products for consumer durables, electronics, hazardous goods, industrial products, fruit and vegetables, frozen foods, etc. In addition, the company offers forwarding services for various transport modes, such as truck, rail, and barge, as well as marine and road and rail transport; terminal services; and liquid and solid biofuels, pellets, stall pellets, and wind energy. Further, it engages in the processing and distribution of wood products; production of Kraft and chemical thermomechanical pulps, and containerboards; and generation of energy from wind power projects, biomass, and by-products. The company has operation in Sweden, the United States, the United Kingdom, Germany, rest of Europe, Asia, and internationally. Svenska Cellulosa Aktiebolaget SCA (publ) was founded in 1929 and is headquartered in Sundsvall, Sweden.

About Trex (Get Rating)

Trex Company, Inc. manufactures and distributes decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. The company operates in two segments, Trex Residential and Trex Commercial. It offers decking products under the names Trex Transcend, Trex Select, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps. The company also provides Trex Transcend Railing products that are used in Trex decking products and other decking materials; Trex Select Railing products for a simple clean finished look; Trex Enhance Railing system; and Trex Signature aluminum railing for a contemporary look. In addition, it offers Trex Seclusions, a fencing product that includes structural posts, bottom and top rails, pickets, and decorative post caps. In addition, it designs, engineers, and markets architectural and aluminum railing systems, and staging equipment and accessories for the commercial market, as well as sports stadiums and performing arts venues. Further, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Pergola, a cellular PVC product; Trex Latticeworks outdoor lattice boards; Trex Cornhole boards; Diablo Trex Blade, a saw blade for wood-alternative composite decking; Trex SpiralStairs and structural steel posts; and Trex Outdoor Kitchens, Cabinetry, and Storage products. It sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe's stores, as well as through its direct sales staff, independent sales representatives, and bidding on projects. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.

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