Reviewing Fibria Celulose (FBR) & Clearwater Paper Corporation (CLW)

Clearwater Paper Corporation (NYSE: CLW) and Fibria Celulose (NYSE:FBR) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for Clearwater Paper Corporation and Fibria Celulose, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clearwater Paper Corporation 0 2 2 0 2.50
Fibria Celulose 0 0 3 0 3.00

Clearwater Paper Corporation presently has a consensus price target of $66.00, indicating a potential upside of 48.15%. Fibria Celulose has a consensus price target of $13.50, indicating a potential upside of 18.11%. Given Clearwater Paper Corporation’s higher probable upside, research analysts plainly believe Clearwater Paper Corporation is more favorable than Fibria Celulose.

Valuation & Earnings

This table compares Clearwater Paper Corporation and Fibria Celulose’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Clearwater Paper Corporation $1.73 billion 0.42 $167.90 million $1.54 28.93
Fibria Celulose $3.10 billion 2.04 $1.01 billion N/A N/A

Fibria Celulose has higher revenue and earnings than Clearwater Paper Corporation.

Dividends

Fibria Celulose pays an annual dividend of $0.19 per share and has a dividend yield of 1.7%. Clearwater Paper Corporation does not pay a dividend.

Volatility and Risk

Clearwater Paper Corporation has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Fibria Celulose has a beta of 0.03, indicating that its stock price is 97% less volatile than the S&P 500.

Insider and Institutional Ownership

84.6% of Clearwater Paper Corporation shares are held by institutional investors. Comparatively, 6.1% of Fibria Celulose shares are held by institutional investors. 2.4% of Clearwater Paper Corporation shares are held by company insiders. Comparatively, 40.2% of Fibria Celulose shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Clearwater Paper Corporation and Fibria Celulose’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clearwater Paper Corporation 1.49% 7.74% 2.23%
Fibria Celulose 0.15% 0.15% 0.06%

Clearwater Paper Corporation Company Profile

Clearwater Paper Corporation manufactures consumer tissue, away-from-home (AFH) tissue, parent roll tissue, bleached paperboard and pulp at manufacturing facilities across the nation. The Company operates through two segments: Consumer Products segment, and Pulp and Paperboard segment. The Company’s Consumer Products segment manufactures and sells a line of at-home tissue products, as well as AFH products. The Company’s Pulp and Paperboard segment manufactures and markets bleached paperboard for the packaging industry. It is a producer of solid bleach sulfate (SBS) paperboard. The Company is a supplier of private label tissue to a range of retailers and wholesale distributors, including grocery, drug, mass merchants and discount stores. In addition, the Company produces bleached paperboard used by printers and packaging converters, and offers services that include custom sheeting, slitting and cutting.

Fibria Celulose Company Profile

Fibria Celulose S.A. (Fibria) is a forestry company, which is engaged in the production of eucalyptus pulp. The Company is engaged in the production and sale of short fiber pulp from its pulp production facilities located in the cities of Aracruz (State of Espirito Santo), Tres Lagoas (State of Mato Grosso do Sul), Jacarei (State of Sao Paulo) and Eunapolis (State of Bahia). The Company’s activities are focused on the growth of renewable and forests, and the manufacture and sale of bleached eucalyptus kraft pulp. The Company’s annual production capacity is approximately 5.3 million tons of pulp. Fibria has over 969,000 hectares of forests, with approximately 568,000 hectares of planted forests, over 338,000 hectares of environmental preservation and conservation areas, and approximately 63,000 hectares destined for other uses. The pulp produced by Fibria is exported to approximately 40 countries. The pulp produced for export is delivered to customers by sea and through various ports.

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