Analyzing CCL Industries (OTCMKTS:CCDBF) and Transcontinental (OTCMKTS:TCLCF)

CCL Industries (OTCMKTS:CCDBF) and Transcontinental (OTCMKTS:TCLCF) are both consumer cyclical companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Dividends

CCL Industries pays an annual dividend of $1.02 per share and has a dividend yield of 1.8%. Transcontinental pays an annual dividend of $0.63 per share and has a dividend yield of 5.1%. CCL Industries pays out 18.6% of its earnings in the form of a dividend. Transcontinental pays out 46.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of current ratings and price targets for CCL Industries and Transcontinental, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CCL Industries	0	0	1	0	3.00
Transcontinental	0	0	0	0	0.00

CCL Industries presently has a consensus target price of $84.00, suggesting a potential upside of 51.02%. Given CCL Industries’ stronger consensus rating and higher probable upside, analysts clearly believe CCL Industries is more favorable than Transcontinental.

Profitability

This table compares CCL Industries and Transcontinental’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CCL Industries	N/A	N/A	N/A
Transcontinental	N/A	N/A	N/A

Earnings & Valuation

This table compares CCL Industries and Transcontinental”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CCL Industries	N/A	N/A	N/A	$5.45	10.21
Transcontinental	N/A	N/A	N/A	$1.34	9.18

Transcontinental is trading at a lower price-to-earnings ratio than CCL Industries, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

37.2% of CCL Industries shares are held by institutional investors. Comparatively, 0.0% of Transcontinental shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

CCL Industries beats Transcontinental on 7 of the 8 factors compared between the two stocks.

About CCL Industries

CCL Industries Inc. manufactures and sells labels, consumer printable media products, technology-driven label solutions, polymer banknote substrates, and specialty films. It operates through CCL, Avery, Checkpoint, and Innovia segments. The CCL segment converts pressure sensitive and extruded film materials for a range of decorative, instructional, security, and functional applications for government institutions and global customers in consumer packaging, healthcare, chemicals, consumer durables, electronic device, and automotive markets. The Avery segment supplies labels, specialty converted media, and software solutions to enable short-run digital printing in businesses and homes alongside complementary products sold through distributors, mass-market stores, and e-commerce retailers. The Checkpoint segment engages in developing radio frequency and radio frequency identification-based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions for the retail and apparel industries. The Innovia segment supplies biaxially oriented polypropylene films to customers in the pressure sensitive label materials, flexible packaging, and consumer packaged goods industries. The company operates in Canada, the United States, Puerto Rico, Mexico, Brazil, Chile, Argentina, Europe, Asia, Australia, Africa, and New Zealand. CCL Industries Inc. was founded in 1951 and is headquartered in Toronto, Canada.

About Transcontinental

Transcontinental Inc. engages in the flexible packaging business in Canada, the United States, Latin America, the United Kingdom, Australia, and New Zealand. It operates through Packaging, Printing, and Media sectors. The Packaging sector engages in the extrusion, lamination, printing, and converting packaging solutions; and manufacturing and recycling flexible plastic, including rollstock, bags and pouches, coextruded films, shrink films and bags, and advanced coatings. This sector serves agriculture, beverage, cheese and dairy, coffee and tea, frozen, health and wellness, home and personal care, industrial, lawn and garden, meat and protein, pet food, snacks, confection and dairy foods, tobacco, music, and entertainment markets, as well as supermarkets. The Printing sector provides integrated services for retailers, such as premedia services, flyer and in-store marketing product printing, and door-to-door distribution, as well as print solutions for newspapers, magazines, 4-color books, and personalized and mass marketing products. The Media sector is involved in printing and digital publishing of educational and trade books, and specialized publications for professionals and newspapers in French and English. Transcontinental Inc. was founded in 1976 and is headquartered in Montreal, Canada.