Resolute Forest Products (NYSE:RFP) vs. Hadera Paper (NYSE:HAIPF) Financial Review

Resolute Forest Products (NYSE:RFP) and Hadera Paper (OTCMKTS:HAIPF) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings for Resolute Forest Products and Hadera Paper, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Resolute Forest Products 1 2 1 0 2.00
Hadera Paper 0 0 0 0 N/A

Resolute Forest Products presently has a consensus price target of $4.31, indicating a potential downside of 13.40%. Given Resolute Forest Products’ higher possible upside, equities research analysts clearly believe Resolute Forest Products is more favorable than Hadera Paper.

Earnings & Valuation

This table compares Resolute Forest Products and Hadera Paper’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Resolute Forest Products $2.92 billion 0.15 -$47.00 million N/A N/A
Hadera Paper N/A N/A N/A N/A N/A

Hadera Paper has lower revenue, but higher earnings than Resolute Forest Products.

Profitability

This table compares Resolute Forest Products and Hadera Paper’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Resolute Forest Products -4.08% -10.49% -3.73%
Hadera Paper N/A N/A N/A

Institutional and Insider Ownership

81.3% of Resolute Forest Products shares are held by institutional investors. 1.4% of Resolute Forest Products shares are held by company insiders. Comparatively, 11.5% of Hadera Paper shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Resolute Forest Products has a beta of 3.16, meaning that its stock price is 216% more volatile than the S&P 500. Comparatively, Hadera Paper has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500.

Summary

Resolute Forest Products beats Hadera Paper on 5 of the 9 factors compared between the two stocks.

About Resolute Forest Products

Resolute Forest Products Inc., together with its subsidiaries, operates in the forest products industry in the United States, Canada, Mexico, and internationally. The company operates through five segments: Market Pulp, Tissue, Wood Products, Newsprint, and Specialty Papers. The Market Pulp segment offers virgin and recycled bleached kraft pulp. The Tissue segment provides various tissue products, such as virgin paper products for the away-from-home and at-home markets; and sells parent rolls. The Wood Products segment produces construction-grade and spruce-pine-fir lumber products, bed frame components, finger joints, and furring strips, as well as I-joists for the construction industry. The Newsprint segment offers newsprint to newspaper publishers, as well as to commercial printers for a range of uses comprising inserts and flyers. The Specialty Papers segment offers various uncoated mechanical papers, including supercalendered and white papers, as well as uncoated freesheet papers. Its specialty papers are used in books, retail inserts, direct mail, coupons, magazines, catalogs, bags, and other commercial printing applications. This segment sells specialty papers to commercial printers, direct mailers, publishers, catalogers, and retailers. The company also produces electricity at six cogeneration facilities and seven hydroelectric dams. Resolute Forest Products Inc. is headquartered in Montreal, Canada.

About Hadera Paper

Hadera Paper Ltd., through its subsidiaries, manufactures and sells writing and printing paper, packaging paper, cardboard and corrugated boards, and recycled paper products in Israel and internationally. It provides collection and recycling services for wastepaper, cardboard and plastic waste, electronic waste, and other recyclable materials; and offers cardboard packaging solutions for the food, cosmetics, pharmaceutics, textile, high-tech, games, plastic, and metal products. The company also offers office supplies, paper and paper products, technology and peripherals, hobbies and crafts, furniture, food, and cleaning products. The company was formerly known as American Israeli Paper Mills Ltd. and changed its name to Hadera Paper Ltd. in July 2008. Hadera Paper Ltd. was founded in 1951 and is based in Hadera, Israel.

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