Critical Analysis: Ball (NYSE:BALL) versus Crown (NYSE:CCK)

Ball (NYSE:BALLGet Rating) and Crown (NYSE:CCKGet Rating) are both large-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Dividends

Ball pays an annual dividend of $0.80 per share and has a dividend yield of 1.1%. Crown pays an annual dividend of $0.88 per share and has a dividend yield of 0.8%. Ball pays out 23.4% of its earnings in the form of a dividend. Crown pays out -19.7% 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. Crown has raised its dividend for 1 consecutive years.

Insider & Institutional Ownership

82.6% of Ball shares are held by institutional investors. Comparatively, 91.5% of Crown shares are held by institutional investors. 1.4% of Ball shares are held by insiders. Comparatively, 1.8% of Crown shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Ball and Crown, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ball 0 1 1 0 2.50
Crown 0 0 9 0 3.00

Ball presently has a consensus price target of $87.00, indicating a potential upside of 19.74%. Crown has a consensus price target of $143.50, indicating a potential upside of 34.82%. Given Crown’s stronger consensus rating and higher probable upside, analysts clearly believe Crown is more favorable than Ball.

Risk & Volatility

Ball has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500. Comparatively, Crown has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Profitability

This table compares Ball and Crown’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ball 7.80% 30.95% 5.85%
Crown -4.63% 39.60% 6.62%

Valuation & Earnings

This table compares Ball and Crown’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ball $13.81 billion 1.68 $878.00 million $3.42 21.25
Crown $11.39 billion 1.15 -$560.00 million ($4.47) -23.81

Ball has higher revenue and earnings than Crown. Crown is trading at a lower price-to-earnings ratio than Ball, indicating that it is currently the more affordable of the two stocks.

Summary

Crown beats Ball on 10 of the 17 factors compared between the two stocks.

Ball Company Profile (Get Rating)

Ball Corporation supplies aluminum packaging products for the beverage, personal care, and household products industries in the United States, Brazil, and internationally. It operates through four segments: Beverage Packaging, North and Central America; Beverage Packaging, Europe, Middle East and Africa; Beverage Packaging, South America; and Aerospace. The company manufactures and sells aluminum beverage containers to fillers of carbonated soft drinks, beer, energy drinks, and other beverages. It also develops spacecraft, sensors and instruments, radio frequency systems, and other technologies for the civil, commercial, and national security aerospace markets, as well as offers defense hardware, antenna and video tactical solutions, civil and operational space hardware, and systems engineering services. In addition, the company designs, manufactures, and tests satellites, remote sensors, and ground station control hardware and software; and provides launch vehicle integration and satellite operational services. Further, it offers target identification, warning, and attitude control systems and components; cryogenic systems and associated sensor cooling devices; star trackers; and fast-steering mirrors to the government agencies or their prime contractors. Additionally, the company manufactures and sells extruded aluminum aerosol containers, recloseable aluminum bottles, aluminum cups, and aluminum slugs. Ball Corporation was founded in 1880 and is headquartered in Westminster, Colorado.

Crown Company Profile (Get Rating)

Crown Holdings, Inc. designs, manufactures, and sells packaging products and equipment for consumer goods and industrial products in the Americas, Europe, and the Asia Pacific. It offers products for consumer goods, including steel and aluminum cans for food and beverage industries. The company also provides products for industrial products, such as steel and plastic strap consumables and equipment, paper-based protective packaging, and plastic film consumables and equipment to metals, food and beverage, construction, agricultural, corrugated, and general industries. In addition, it offers other consumer products, glass bottles for beverage products, steel crowns, aluminum caps, steel strap, plastic strap, industrial film, and other related products, as well as equipment and tools, such as manual, semi-automatic, and automatic equipment and tools used in end of line manufacturing applications to apply industrial solutions consumables. Crown Holdings, Inc. was founded in 1892 and is headquartered in Yardley, Pennsylvania.

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