Critical Analysis: Sealed Air (NYSE:SEE) versus Its Competitors

Sealed Air (NYSE: SEE) is one of 15 public companies in the “Non-Paper Containers & Packaging” industry, but how does it contrast to its competitors? We will compare Sealed Air to related businesses based on the strength of its dividends, institutional ownership, earnings, valuation, analyst recommendations, profitability and risk.

Dividends

Sealed Air pays an annual dividend of $0.64 per share and has a dividend yield of 1.3%. Sealed Air pays out 12.2% of its earnings in the form of a dividend. As a group, “Non-Paper Containers & Packaging” companies pay a dividend yield of 2.2% and pay out 48.0% of their earnings in the form of a dividend. Sealed Air has raised its dividend for 2 consecutive years.

Insider & Institutional Ownership

92.9% of Sealed Air shares are owned by institutional investors. Comparatively, 75.3% of shares of all “Non-Paper Containers & Packaging” companies are owned by institutional investors. 1.1% of Sealed Air shares are owned by company insiders. Comparatively, 7.1% of shares of all “Non-Paper Containers & Packaging” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Sealed Air and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sealed Air 0 6 6 0 2.50
Sealed Air Competitors 93 604 410 6 2.30

Sealed Air presently has a consensus price target of $49.20, suggesting a potential upside of 0.70%. As a group, “Non-Paper Containers & Packaging” companies have a potential upside of 1.26%. Given Sealed Air’s competitors higher probable upside, analysts plainly believe Sealed Air has less favorable growth aspects than its competitors.

Risk & Volatility

Sealed Air has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, Sealed Air’s competitors have a beta of 1.21, indicating that their average stock price is 21% more volatile than the S&P 500.

Profitability

This table compares Sealed Air and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sealed Air 20.15% 67.60% 5.49%
Sealed Air Competitors 2.82% 22.99% 4.08%

Earnings and Valuation

This table compares Sealed Air and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sealed Air $6.78 billion $486.40 million 9.31
Sealed Air Competitors $4.42 billion $182.22 million 136.53

Sealed Air has higher revenue and earnings than its competitors. Sealed Air is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Sealed Air beats its competitors on 10 of the 15 factors compared.

Sealed Air Company Profile

Sealed Air Corporation is engaged in food safety and security, facility hygiene and product protection business. The Company’s segments are Food Care (includes Corporate, Medical Applications and New Ventures businesses), Product Care and Corporate. The Food Care segment focuses on providing a range of integrated system solutions. The Food Care business serves primarily perishable food and beverage processors, predominately in fresh red meat, smoked and processed meats, beverages, poultry and dairy (solids and liquids) markets throughout the world. The Product Care segment provides customers with a range of Product Care solutions to meet cushioning, void fill, surface protection, retail display, containment and dunnage needs.

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