Head to Head Review: Acadian Timber (OTCMKTS:ACAZF) vs. Enviva (NYSE:EVA)

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

Analyst Ratings

This is a breakdown of current ratings for Enviva and Acadian Timber, as reported by MarketBeat.

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

Enviva presently has a consensus price target of $7.50, indicating a potential upside of 1,371.45%. Acadian Timber has a consensus price target of $17.50, indicating a potential upside of 35.98%. Given Enviva’s higher probable upside, equities research analysts clearly believe Enviva is more favorable than Acadian Timber.

Insider and Institutional Ownership

77.8% of Enviva shares are held by institutional investors. Comparatively, 57.3% of Acadian Timber shares are held by institutional investors. 54.1% of Enviva shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enviva	$1.09 billion	0.03	-$168.31 million	($4.89)	-0.10
Acadian Timber	N/A	N/A	N/A	$0.49	26.27

Acadian Timber has lower revenue, but higher earnings 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.

Summary

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

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.

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.