Critical Comparison: Canfor Pulp Products (OTCMKTS:CFPUF) & Lee & Man Paper Manufacturing (OTCMKTS:LMPMY)

Canfor Pulp Products (OTCMKTS:CFPUF) and Lee & Man Paper Manufacturing (OTCMKTS:LMPMY) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Institutional & Insider Ownership

74.1% of Canfor Pulp Products shares are owned by institutional investors. Comparatively, 0.0% of Lee & Man Paper Manufacturing shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Canfor Pulp Products and Lee & Man Paper Manufacturing’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Canfor Pulp Products	N/A	N/A	N/A	$1.17	1.24
Lee & Man Paper Manufacturing	N/A	N/A	N/A	$4.02	0.77

Lee & Man Paper Manufacturing is trading at a lower price-to-earnings ratio than Canfor Pulp Products, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Canfor Pulp Products and Lee & Man Paper Manufacturing, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Canfor Pulp Products	0	1	1	0	2.50
Lee & Man Paper Manufacturing	1	0	0	0	1.00

Canfor Pulp Products presently has a consensus price target of $10.88, indicating a potential upside of 652.07%. Given Canfor Pulp Products’ stronger consensus rating and higher probable upside, research analysts plainly believe Canfor Pulp Products is more favorable than Lee & Man Paper Manufacturing.

Dividends

Canfor Pulp Products pays an annual dividend of $0.23 per share and has a dividend yield of 15.6%. Lee & Man Paper Manufacturing pays an annual dividend of $0.05 per share and has a dividend yield of 1.6%. Canfor Pulp Products pays out 19.2% of its earnings in the form of a dividend. Lee & Man Paper Manufacturing pays out 1.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares Canfor Pulp Products and Lee & Man Paper Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Canfor Pulp Products	N/A	N/A	N/A
Lee & Man Paper Manufacturing	N/A	N/A	N/A

Summary

Canfor Pulp Products beats Lee & Man Paper Manufacturing on 6 of the 8 factors compared between the two stocks.

About Canfor Pulp Products

Canfor Pulp Products Inc., together with its subsidiaries, engages in the production and supply of pulp and paper products in Canada, Europe, Asia, the United States, and internationally. The company offers solid wood; bleached and unbleached softwood kraft pulps; and bleached, unbleached, and coloured kraft papers. It also produces green energy. The company is headquartered in Vancouver, Canada. Canfor Pulp Products Inc. is a subsidiary of Canadian Forest Products Ltd.

About Lee & Man Paper Manufacturing

Lee & Man Paper Manufacturing Limited, an investment holding company, manufactures and trades in packaging papers, pulps, and tissue papers in the People's Republic of China, Vietnam, Malaysia, Macau, and Hong Kong. The company operates through Packaging Paper, Tissue Paper, and Pulp segments. It offers various pulp products, such as dissolved pulps for use in viscose chemical fibers, bamboo fibers, glass papers, acetate fibers, refined rayons, etc.; unbleached bamboo kraft pulps for use in ecru life papers, environmental table wares, food bags, etc.; and bleached bamboo kraft pulps for use in tissue papers, fine papers, cigarette papers, cup papers, etc. The company also provides containerboard products, including kraft and test linerboards for use in cartons, paper bags, file boxes, paperboards, wall papers, etc.; and corrugating liners for use in corrugated layer and septi-layer of paperboards, and honeycomb-like products. In addition, it offers white lined chipboards and environment friendly white linerboard coated products for use in graphic cartons, color card printing, and offset printing, as well as in packaging of commodities, household appliances, IT products, medicine/health care products, food products, toys, gifts, ceramic products, stationery products, beverages, etc.; toilet rolls for wiping and cleaning of hands, faces, food, etc.; and unbleached paper for use in various applications, such as baby care, menstruation, facial, sensitive skin, table, kitchen, etc. The company was founded in 1994 and is headquartered in North Point, Hong Kong.