Acadian Timber (OTCMKTS:ACAZF) versus Enviva (NYSE:EVA) Financial Analysis

Acadian Timber (OTCMKTS:ACAZF) and Enviva (NYSE:EVA) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Profitability

This table compares Acadian Timber and Enviva’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acadian Timber	N/A	N/A	N/A
Enviva	-29.65%	-104.81%	-10.10%

Analyst Ratings

This is a summary of current recommendations and price targets for Acadian Timber and Enviva, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acadian Timber	0	0	1	0	3.00
Enviva	2	3	0	0	1.60

Acadian Timber presently has a consensus target price of $17.50, indicating a potential upside of 34.51%. Enviva has a consensus target price of $7.50, indicating a potential upside of 1,294.05%. Given Enviva’s higher probable upside, analysts clearly believe Enviva is more favorable than Acadian Timber.

Valuation & Earnings

This table compares Acadian Timber and Enviva’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acadian Timber	N/A	N/A	N/A	$0.49	26.55
Enviva	$1.09 billion	0.04	-$168.31 million	($4.89)	-0.11

Acadian Timber has higher earnings, but lower revenue than Enviva. Enviva is trading at a lower price-to-earnings ratio than Acadian Timber, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

57.3% of Acadian Timber shares are owned by institutional investors. Comparatively, 77.8% of Enviva shares are owned by institutional investors. 54.1% of Enviva shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Acadian Timber beats Enviva on 7 of the 11 factors compared between the two stocks.

About Acadian Timber

Acadian Timber Corp. supplies primary forest products in Eastern Canada and the Northeastern United States. The company operates in two segments, NB Timberlands and Maine Timberlands. Its products include softwood and hardwood sawlogs, pulpwood, and biomass by-products. The company owns and manages freehold timberlands in New Brunswick and Maine; and provides timber services relating to Crown licensed timberlands in New Brunswick. Acadian Timber Corp. was founded in 2006 and is headquartered in Edmundston, Canada.

About Enviva

Enviva Inc. produces, processes, and sells utility-grade wood pellets. The company's products are used as a substitute for coal in power generation, and combined heat and power plants. It serves power generators in the United Kingdom, European Union, and Japan. DS: The company was formerly known as Enviva Partners, LP and changed its name to Enviva Inc. in December 2021. Enviva Inc. was incorporated in 2013 and is headquartered in Bethesda, Maryland. On March 12, 2024, Enviva Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Virginia.