City Office REIT (NYSE:CIO) versus Weyerhaeuser (NYSE:WY) Head to Head Review

Weyerhaeuser (NYSE:WY) and City Office REIT (NYSE:CIO) are both construction companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.

Risk and Volatility

Weyerhaeuser has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, City Office REIT has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500.

Dividends

Weyerhaeuser pays an annual dividend of $0.80 per share and has a dividend yield of 2.5%. City Office REIT pays an annual dividend of $0.40 per share and has a dividend yield of 6.9%. Weyerhaeuser pays out 108.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. City Office REIT pays out -95.2% of its earnings in the form of a dividend. City Office REIT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current recommendations for Weyerhaeuser and City Office REIT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Weyerhaeuser	0	4	3	0	2.43
City Office REIT	0	0	0	0	0.00

Weyerhaeuser presently has a consensus price target of $36.33, indicating a potential upside of 12.63%. Given Weyerhaeuser’s stronger consensus rating and higher possible upside, research analysts plainly believe Weyerhaeuser is more favorable than City Office REIT.

Institutional & Insider Ownership

83.0% of Weyerhaeuser shares are held by institutional investors. Comparatively, 67.5% of City Office REIT shares are held by institutional investors. 0.3% of Weyerhaeuser shares are held by company insiders. Comparatively, 3.9% of City Office REIT shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Weyerhaeuser and City Office REIT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Weyerhaeuser	7.43%	4.21%	2.52%
City Office REIT	-5.56%	-1.48%	-0.65%

Valuation & Earnings

This table compares Weyerhaeuser and City Office REIT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Weyerhaeuser	$7.67 billion	3.05	$839.00 million	$0.74	43.59
City Office REIT	$173.53 million	1.34	-$2.68 million	($0.42)	-13.81

Weyerhaeuser has higher revenue and earnings than City Office REIT. City Office REIT is trading at a lower price-to-earnings ratio than Weyerhaeuser, indicating that it is currently the more affordable of the two stocks.

Summary

Weyerhaeuser beats City Office REIT on 12 of the 16 factors compared between the two stocks.

About Weyerhaeuser

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2022, we generated $10.2 billion in net sales and employed approximately 9,200 people who serve customers worldwide. Our common stock trades on the New York Stock Exchange under the symbol WY.

About City Office REIT

City Office REIT is an internally-managed real estate company focused on acquiring, owning and operating high-quality office properties located predominantly in Sun Belt markets. City Office currently owns or has a controlling interest in 5.7 million square feet of office properties. The Company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.