Iron Mountain Incorporated versus Weyerhaeuser Co. Head to Head Compare

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This is a head to head compare of Iron Mountain Incorporated (NYSE:IRM) and Weyerhaeuser Co. (NYSE:WY) . We will compare the two companies on revenue growth, earnings, revenue per employee, operating margins, free cash flow and valuation. The head to head compare assigns 100 points in total.

Before we dive into the analysis, we will look at the stock returns for each company over the last three months, six months and the last year. The stock returns do not impact the head to head compare scores which are focused on the fundamentals of each company, but ultimately stock returns are are still a critical piece to a full analysis and compare.

Stock Returns
Symbol 3-Months 6-Months One-Year Fundamentals
IRM +5.4% +7.6% +3.8%
WY +14.9% +11.0% +9.1%

Weyerhaeuser Co. has a higher fundamental rating then Iron Mountain Incorporated which has an impact on the head-to-head comparison. The CML Star Rating is an objective, quantifiable measure of a company's operating and financial condition. The rating is computed by measuring numerous elements of the company's current financial data and their associated changes over time.

Now, let's dive into the two companies to compare them.

➤ Income Statement
First we turn to the income statement and compare revenue, earnings and revenue per employee for both companies. We note that simple revenue comparisons do not impact the rating.

Weyerhaeuser Co. has larger revenue in the last year than Iron Mountain Incorporated. Raw revenue comps do not affect the head to head rating.

Both IRM and WY show positive earnings over the last year with the edge to WY.

Net Income

WY generates massively larger revenue per employee ($614,000) than IRM ($150,000).

Revenue per Employee
($ Millions)

➤ Margins
Next we create some derived metrics to compare the the amount of revenue earned per dollar of expense and the amount of free cash flow earned per dollar of revenue. Margins are one of the fairest ways to compare companies since they remove some of the bias of large versus small numbers.

Iron Mountain Incorporated generates $1.22 in revenue for every $1 of expense, very similar to Weyerhaeuser Co.'s $1.16.

Revenue per Dollar of Expense

WY generates $0.17 in levered free cash flow for every $1 of revenue, massively higher than IRM's $0.06.

Free Cash Flow
per Dollar of Revenue

➤ Growth
Finally we compare the financial metrics related to growth: revenue growth rates and price to sales.

While Iron Mountain Incorporated is growing revenue, Weyerhaeuser Co. revenue is actually shrinking.

Revenue Growth

For every $1 in revenue, the stock market prices in $2.98 in market cap for IRM and $3.98 in market cap for WY.

Price to Sales

Weyerhaeuser Co. (NYSE:WY)
Iron Mountain Incorporated (NYSE:IRM) : 66 to 34