Crown Holdings (NYSE: CCK) and Sonoco Products (NYSE:SON) are both mid-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.
Volatility & Risk
Crown Holdings has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Sonoco Products has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.
Sonoco Products pays an annual dividend of $1.56 per share and has a dividend yield of 3.1%. Crown Holdings does not pay a dividend. Sonoco Products pays out 57.4% of its earnings in the form of a dividend. Sonoco Products has raised its dividend for 36 consecutive years.
Valuation and Earnings
This table compares Crown Holdings and Sonoco Products’ revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Crown Holdings has higher revenue and earnings than Sonoco Products. Crown Holdings is trading at a lower price-to-earnings ratio than Sonoco Products, indicating that it is currently the more affordable of the two stocks.
This table compares Crown Holdings and Sonoco Products’ net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
This is a summary of current ratings and target prices for Crown Holdings and Sonoco Products, as reported by MarketBeat.com.
||Strong Buy Ratings
Crown Holdings currently has a consensus price target of $63.89, suggesting a potential upside of 8.01%. Sonoco Products has a consensus price target of $52.00, suggesting a potential upside of 2.48%. Given Crown Holdings’ stronger consensus rating and higher possible upside, equities analysts plainly believe Crown Holdings is more favorable than Sonoco Products.
Institutional & Insider Ownership
90.9% of Crown Holdings shares are held by institutional investors. Comparatively, 71.6% of Sonoco Products shares are held by institutional investors. 1.8% of Crown Holdings shares are held by insiders. Comparatively, 1.9% of Sonoco Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Crown Holdings beats Sonoco Products on 11 of the 17 factors compared between the two stocks.
Crown Holdings Company Profile
Crown Holdings, Inc. is engaged in the design, manufacture and sale of packaging products for consumer goods. The Company’s business is organized within three divisions: Americas, Europe and Asia Pacific. Within each division, the Company is organized along product lines. The Company’s segments within the Americas Division are Americas Beverage and North America Food. The Company’s segments within the European Division are European Beverage and European Food. The Company’s Asia Pacific Division segment consists of its beverage and non-beverage can operations. The Company is also engaged in European aerosol and specialty packaging business, its North American aerosol can business, and its tooling and equipment operations in the Unites States and the United Kingdom. As of December 31, 2016, the Company operated 146 plants along with sales and service facilities throughout 36 countries. It also has three canmaking and spare part operations in the United States and the United Kingdom.
Sonoco Products Company Profile
Sonoco Products Company is engaged in manufacturing of industrial and consumer packaging products, and providing packaging services. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. Its Consumer Packaging segment’s products and services include round composite cans, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; plastic bottles, cups and trays, and printed flexible packaging and global brand management. The Display and Packaging segment’s products and services include point-of-purchase displays; fulfilment; supply chain management, and paperboard specialties. Its Paper and Industrial Converted Products segment provides the raw material for its fiber-based packaging. The Protective Solutions segment’s products and services include custom-engineered and expanded foam protective packaging and components, and temperature-assured packaging.
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