UFP Technologies (NASDAQ: UFPT) and AptarGroup (NYSE:ATR) are both industrial products companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, profitability, earnings, dividends, risk and institutional ownership.
Volatility & Risk
UFP Technologies has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500. Comparatively, AptarGroup has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
Institutional & Insider Ownership
69.8% of UFP Technologies shares are held by institutional investors. Comparatively, 92.3% of AptarGroup shares are held by institutional investors. 13.3% of UFP Technologies shares are held by company insiders. Comparatively, 5.3% of AptarGroup shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares UFP Technologies and AptarGroup’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
AptarGroup pays an annual dividend of $1.28 per share and has a dividend yield of 1.4%. UFP Technologies does not pay a dividend. AptarGroup pays out 37.4% of its earnings in the form of a dividend. AptarGroup has raised its dividend for 5 consecutive years.
This is a summary of current recommendations and price targets for UFP Technologies and AptarGroup, as reported by MarketBeat.
||Strong Buy Ratings
AptarGroup has a consensus target price of $84.14, suggesting a potential downside of 6.66%. Given AptarGroup’s higher possible upside, analysts clearly believe AptarGroup is more favorable than UFP Technologies.
Earnings and Valuation
This table compares UFP Technologies and AptarGroup’s revenue, earnings per share and valuation.
||Earnings Per Share
AptarGroup has higher revenue and earnings than UFP Technologies. UFP Technologies is trading at a lower price-to-earnings ratio than AptarGroup, indicating that it is currently the more affordable of the two stocks.
AptarGroup beats UFP Technologies on 14 of the 16 factors compared between the two stocks.
About UFP Technologies
UFP Technologies, Inc. is a designer and custom converter of foams, plastics, composites and natural fiber materials. The Company is engaged in providing solutions to customers primarily within the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets. It converts these materials using laminating, molding, and fabricating manufacturing technologies. The Company’s raw materials consist of polyethylene and polyurethane foams, sheet plastics, pulp fiber, cross-linked polyethylene and reticulated polyurethane foams, fabric and foam laminates, and natural fiber materials. The Company converts these materials to provide customers various solutions, including automotive interior trim, medical device components, disposable wound care components, military uniform and gear components, athletic padding, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, and cushion packaging for their products.
AptarGroup, Inc. is a provider of a range of packaging, dispensing and sealing solutions, primarily for the beauty, personal care, homecare, prescription drug, consumer healthcare, injectables, food and beverage markets. The Company has manufacturing facilities located throughout the world, including North America, Europe, Asia and South America. The Company operates through three segments: Beauty + Home, Pharma and Food + Beverage. It offers various dispensing and sealing solutions. Its primary products are dispensing pumps, closures, aerosol valves and elastomeric primary packaging components. Its elastomeric components also include pre filled syringe components, such as plungers, needle shields, tip caps and cartridges, as well as dropper bulbs and syringe plungers. Its Beauty + Home segment primarily sells pumps, closures, aerosol valves, accessories and sealing solutions to the personal care and home care markets, and pumps and decorative components to the beauty market.
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