Sugarmade (OTCMKTS:SGMD) vs. West Fraser Timber (NYSE:WFG) Critical Survey

West Fraser Timber (NYSE:WFG) and Sugarmade (OTCMKTS:SGMD) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Valuation and Earnings

This table compares West Fraser Timber and Sugarmade”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Fraser Timber	$5.46 billion	1.02	-$937.00 million	($15.44)	-4.61
Sugarmade	N/A	N/A	N/A	N/A	N/A

Sugarmade has lower revenue, but higher earnings than West Fraser Timber.

Analyst Ratings

This is a breakdown of current ratings and price targets for West Fraser Timber and Sugarmade, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Fraser Timber	1	3	4	0	2.38
Sugarmade	0	0	0	0	0.00

West Fraser Timber presently has a consensus price target of $83.20, suggesting a potential upside of 16.97%. Given West Fraser Timber’s stronger consensus rating and higher possible upside, analysts clearly believe West Fraser Timber is more favorable than Sugarmade.

Profitability

This table compares West Fraser Timber and Sugarmade’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Fraser Timber	-22.98%	-10.84%	-8.19%
Sugarmade	N/A	N/A	N/A

Volatility and Risk

West Fraser Timber has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Sugarmade has a beta of -1.15, indicating that its stock price is 215% less volatile than the S&P 500.

Institutional and Insider Ownership

40.2% of West Fraser Timber shares are owned by institutional investors. 1.8% of West Fraser Timber shares are owned by company insiders. Comparatively, 5.2% of Sugarmade shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

West Fraser Timber beats Sugarmade on 6 of the 10 factors compared between the two stocks.

About West Fraser Timber

West Fraser Timber Co. Ltd., a diversified wood products company, engages in manufacturing, selling, marketing, and distributing lumber, engineered wood products, pulp, newsprint, wood chips, and other residuals and renewable energy. It offers spruce-pine-fir, douglas fir-larch, hem-fir, and southern yellow pine lumber, treated wood products, medium density fiberboard panels and plywood, oriented strand board, and laminated veneer lumber wood products, as well as particleboards. The company also provides northern bleached softwood Kraft pulp and bleached chemical thermo-mechanical pulp used to produce various paper products, including printing and writing papers, paperboard products, tissue and towel products, and a variety of other paper grades. Further, it offers bioproducts, including bioenergy and biomaterial. Its products are used in home construction, repair and remodeling, papers, tissue, and box materials, and industrial applications. The company sells its products to major retail chains, contractor supply yards, and wholesalers, as well as industrial customers for further processing or as components for other products in Canada, the United States, the United Kingdom, Europe, and internationally. West Fraser Timber Co. Ltd. was founded in 1955 and is headquartered in Vancouver, Canada.

About Sugarmade

Sugarmade, Inc. engages in the paper and paper-based products business in the United States. It operates through three segments: Paper and Paper-Based Products, Non-Medical Supplies, and Cannabis Products Delivery Service and Sales. The company also produces and wholesales custom printed and generic supplies, such as plastic cold cups, paper coffee cups, yogurt cups, ice cream cups, cup lids, cup sleeves, edible packaging, food containers, soup containers, plastic spoons, and other related products to quick-service restaurants. In addition, it offers non-medical personal protective equipment. Further, the company operates the cannabis products delivery and sale services under the BudCars, Lemon Glow, and Nug Avenue brand names. It also offers its products through CarryOutSupplies.com website. Sugarmade, Inc. was founded in 2009 and is based in Monrovia, California.