Comparing Graphic Packaging (GPK) and Its Peers

Graphic Packaging (NYSE: GPK) is one of 24 public companies in the “CONTNRS & GLASS” industry, but how does it compare to its rivals? We will compare Graphic Packaging to similar companies based on the strength of its profitability, institutional ownership, valuation, dividends, risk, earnings and analyst recommendations.

Analyst Recommendations

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This is a summary of current ratings and price targets for Graphic Packaging and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Graphic Packaging 0 2 6 0 2.75
Graphic Packaging Competitors 137 798 793 11 2.39

Graphic Packaging currently has a consensus price target of $17.08, suggesting a potential upside of 12.17%. As a group, “CONTNRS & GLASS” companies have a potential upside of 12.88%. Given Graphic Packaging’s rivals higher probable upside, analysts clearly believe Graphic Packaging has less favorable growth aspects than its rivals.

Dividends

Graphic Packaging pays an annual dividend of $0.30 per share and has a dividend yield of 2.0%. Graphic Packaging pays out 30.9% of its earnings in the form of a dividend. As a group, “CONTNRS & GLASS” companies pay a dividend yield of 2.3% and pay out 42.9% of their earnings in the form of a dividend. Graphic Packaging has raised its dividend for 2 consecutive years.

Insider and Institutional Ownership

99.8% of Graphic Packaging shares are owned by institutional investors. Comparatively, 74.3% of shares of all “CONTNRS & GLASS” companies are owned by institutional investors. 1.0% of Graphic Packaging shares are owned by insiders. Comparatively, 6.5% of shares of all “CONTNRS & GLASS” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Graphic Packaging and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Graphic Packaging 6.82% 17.09% 4.13%
Graphic Packaging Competitors 6.97% 26.17% 5.66%

Risk and Volatility

Graphic Packaging has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, Graphic Packaging’s rivals have a beta of 0.99, suggesting that their average stock price is 1% less volatile than the S&P 500.

Earnings & Valuation

This table compares Graphic Packaging and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Graphic Packaging $4.40 billion $300.20 million 15.70
Graphic Packaging Competitors $4.63 billion $266.86 million 20.85

Graphic Packaging’s rivals have higher revenue, but lower earnings than Graphic Packaging. Graphic Packaging is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Graphic Packaging rivals beat Graphic Packaging on 9 of the 15 factors compared.

About Graphic Packaging

Graphic Packaging Holding Company is a provider of paper-based packaging solutions for a range of products to food, beverage and other consumer product companies. The Company’s segments include Paperboard Mills, Americas Paperboard Packaging, Europe Paperboard Packaging, and Corporate and Other. The Paperboard Mills segment includes the Company’s North American paperboard mills, which produce primarily coated unbleached kraft and coated recycled board. As of December 31, 2016, the Company had seven paperboard mills in North America. The Americas Paperboard Packaging segment includes paperboard folding cartons sold primarily to consumer packaged goods (CPG) companies serving the food, beverage and consumer product markets in the Americas. The Europe Paperboard Packaging segment includes paperboard folding cartons sold primarily to CPG companies serving the food, beverage and consumer product markets in Europe. The Corporate and Other segment includes the Pacific Rim operating segment.

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