Smurfit Westrock (NYSE:SW – Get Free Report) and Sonoco Products (NYSE:SON – Get Free Report) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Smurfit Westrock and Sonoco Products, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Smurfit Westrock | 0 | 3 | 4 | 0 | 2.57 |
Sonoco Products | 1 | 0 | 2 | 0 | 2.33 |
Smurfit Westrock currently has a consensus price target of $56.57, suggesting a potential upside of 23.44%. Sonoco Products has a consensus price target of $59.00, suggesting a potential upside of 11.19%. Given Smurfit Westrock’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Smurfit Westrock is more favorable than Sonoco Products.
Dividends
Valuation & Earnings
This table compares Smurfit Westrock and Sonoco Products”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Smurfit Westrock | $12.46 billion | 0.95 | -$22.40 million | $1.19 | 38.51 |
Sonoco Products | $6.61 billion | 0.79 | $474.96 million | $3.96 | 13.40 |
Sonoco Products has lower revenue, but higher earnings than Smurfit Westrock. Sonoco Products is trading at a lower price-to-earnings ratio than Smurfit Westrock, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Smurfit Westrock has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Sonoco Products has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
Institutional & Insider Ownership
83.4% of Smurfit Westrock shares are owned by institutional investors. Comparatively, 77.7% of Sonoco Products shares are owned by institutional investors. 0.5% of Smurfit Westrock shares are owned by insiders. Comparatively, 0.5% of Sonoco Products shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Smurfit Westrock and Sonoco Products’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Smurfit Westrock | 1.36% | 7.13% | 2.67% |
Sonoco Products | 5.57% | 20.10% | 6.73% |
About Smurfit Westrock
Smurfit Westrock Plc, together with its subsidiaries, manufactures, distributes, and sells containerboard, corrugated containers, and other paper-based packaging products in Ireland and internationally. The company produces containerboard that it converts into corrugated containers or sells to third parties, as well as produces other types of paper, such as consumer packaging board, sack paper, graphic paper, solid board and graphic board, and other paper-based packaging products, such as consumer packaging, solid board packaging, paper sacks, and other packaging products, including bag-in-box. It also produces linerboard and corrugated medium, paperboard, and non-packaging grades of paper, as well as converted products, such as folding cartons and corrugated boxes, and other products; recycled paper-based packaging products; and packaging machinery. The company primarily serves food and beverage, e-commerce, retail, consumer goods, industrial, and foodservice markets. Smurfit Westrock Plc was founded in 1934 and is headquartered in Dublin, Ireland.
About Sonoco Products
Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in North and South America, Europe, Australia, and Asia. The company operates Consumer Packaging and Industrial Paper Packaging segments. The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays and enclosures; and high-barrier flexible packaging products. The Industrial Paper Packaging segment provides paperboard tubes, cones, and cores; paper-based protective packaging products; and uncoated recycled paperboard products. It also offers various packaging materials, including plastic, paper, foam, and other specialty materials. Sonoco Products Company sells its products in various markets, which include paper, textile, film, food, packaging, construction, and wire and cable. The company was founded in 1899 and is headquartered in Hartsville, South Carolina.
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