Crown (NYSE:CCK – Get Rating) and Silgan (NASDAQ:SLGN – Get Rating) are both mid-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.
Valuation and Earnings
This table compares Crown and Silgan’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Crown||$11.39 billion||0.87||-$560.00 million||($2.72)||-30.38|
|Silgan||$5.68 billion||1.03||$359.08 million||$3.60||14.75|
Silgan has lower revenue, but higher earnings than Crown. Crown is trading at a lower price-to-earnings ratio than Silgan, indicating that it is currently the more affordable of the two stocks.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
91.8% of Crown shares are held by institutional investors. Comparatively, 68.2% of Silgan shares are held by institutional investors. 1.8% of Crown shares are held by insiders. Comparatively, 24.3% of Silgan shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Crown pays an annual dividend of $0.88 per share and has a dividend yield of 1.1%. Silgan pays an annual dividend of $0.64 per share and has a dividend yield of 1.2%. Crown pays out -32.4% of its earnings in the form of a dividend. Silgan pays out 17.8% 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 and Silgan has raised its dividend for 17 consecutive years. Silgan is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Crown has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Silgan has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Crown and Silgan, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Crown currently has a consensus price target of $97.13, suggesting a potential upside of 17.55%. Given Crown’s higher possible upside, research analysts plainly believe Crown is more favorable than Silgan.
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.
Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products in North America, Europe, and internationally. It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, tomato based products, adult nutritional drinks, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals. The Dispensing and Specialty Closures segment offers a range of metal and plastic closures, and dispensing systems for use in food, beverage, health care, garden, home, personal care, and beauty products, as well as capping/sealing equipment and detection systems. The Custom Containers segment manufactures and sells custom designed and stock plastic containers for use in personal care and health care; food and beverage; household and industrial chemical; pharmaceutical; pet food and care; agricultural; automotive; and marine chemical products. This segment also provides plastic thermoformed barrier and non-barrier bowls, and trays for food products, such as soups, other ready-to-eat meals, and pet food products; and plastic closures, caps, sifters, and fitments, as well as thermoformed tubs for food, household, and personal care products, including soft fabric wipes. The company markets its products primarily through direct sales force, as well as through a network of distributors and an online shopping catalog. Silgan Holdings Inc. was founded in 1987 and is headquartered in Stamford, Connecticut.
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