Rayonier (NYSE:RYN) vs. UFP Industries (NASDAQ:UFPI) Head-To-Head Analysis

Rayonier (NYSE:RYN) and UFP Industries (NASDAQ:UFPI) are both mid-cap construction companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider & Institutional Ownership

89.1% of Rayonier shares are owned by institutional investors. Comparatively, 81.8% of UFP Industries shares are owned by institutional investors. 0.8% of Rayonier shares are owned by company insiders. Comparatively, 2.6% of UFP Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Rayonier and UFP Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rayonier	30.09%	3.29%	1.74%
UFP Industries	5.64%	11.78%	9.06%

Earnings & Valuation

This table compares Rayonier and UFP Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rayonier	$1.26 billion	2.85	$359.15 million	$2.33	9.92
UFP Industries	$6.65 billion	0.96	$414.56 million	$6.11	17.31

UFP Industries has higher revenue and earnings than Rayonier. Rayonier is trading at a lower price-to-earnings ratio than UFP Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Rayonier and UFP Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rayonier	0	3	1	0	2.25
UFP Industries	0	1	3	0	2.75

Rayonier currently has a consensus target price of $27.75, indicating a potential upside of 20.08%. UFP Industries has a consensus target price of $143.00, indicating a potential upside of 35.23%. Given UFP Industries’ stronger consensus rating and higher possible upside, analysts clearly believe UFP Industries is more favorable than Rayonier.

Risk and Volatility

Rayonier has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, UFP Industries has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500.

Dividends

Rayonier pays an annual dividend of $1.09 per share and has a dividend yield of 4.7%. UFP Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Rayonier pays out 46.8% of its earnings in the form of a dividend. UFP Industries pays out 22.9% 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. UFP Industries has raised its dividend for 5 consecutive years.

Summary

UFP Industries beats Rayonier on 13 of the 17 factors compared between the two stocks.

About Rayonier

Rayonier is a leading timberland real estate investment trust with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. As of December 31, 2023, Rayonier owned or leased under long-term agreements approximately 2.7 million acres of timberlands located in the U.S. South (1.85 million acres), U.S. Pacific Northwest (418,000 acres) and New Zealand (421,000 acres).

About UFP Industries

UFP Industries, Inc., through its subsidiaries, designs, manufactures, and markets wood and non-wood composites, and other materials in North America, Europe, Asia, and Australia. It operates through Retail, Packaging, and Construction segments. The Retail segment offers treated lumber products, including decking, fencing, lattice, and other products; pressure-treated and fire-retardant products used primarily for outdoor decking environments; and lawn and garden products, consisting of wood and vinyl fencing options, garden beds and planters, pergolas, picnic tables, and other landscaping products. This segment also offers wood plastic composites, composite decking, and related decking accessories, including non- aluminum railing systems, balusters, post caps, and other products, as well as pre-painted and primed shiplap and project boards. The Packaging segment provides custom and structural packaging products, pallets, corrugate, foam, labels, strapping, and films. The construction segment offers roof trusses, cut-to-size dimensional and board lumber, plywoods, and oriented strand boards; engineered wood components, including roof and floor trusses, wall panels, I-joists, and lumber packages; and alternate materials components, such as metal trusses, sheathed and pre-finished light gauge metal wall panels, aluminum decks, and rail accessories, as well as distributes siding, electrical, and plumbing products. This segment also engages in the manufacture of components; design, manufacture, and supply of wood forms and related products to set or form concrete for structures, such as parking garages, stadiums, and other infrastructure projects. It also offers interior fixtures, millwork, and casework for retail and commercial structures. The company was formerly known as Universal Forest Products, Inc. and changed its name to UFP Industries, Inc. in April 2020. UFP Industries, Inc. was incorporated in 1955 and is headquartered in Grand Rapids, Michigan.