CCL Industries (OTCMKTS:CCDBF – Get Free Report) and Silgan (NYSE:SLGN – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, earnings, risk, valuation and institutional ownership.
Profitability
This table compares CCL Industries and Silgan’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CCL Industries | 10.27% | 14.78% | 8.02% |
| Silgan | 4.05% | 16.74% | 4.09% |
Dividends
CCL Industries pays an annual dividend of $1.04 per share and has a dividend yield of 1.5%. Silgan pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. CCL Industries pays out 40.2% of its earnings in the form of a dividend. Silgan pays out 32.9% 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. Silgan has raised its dividend for 22 consecutive years. Silgan is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CCL Industries | 0 | 1 | 4 | 0 | 2.80 |
| Silgan | 0 | 3 | 8 | 1 | 2.83 |
Silgan has a consensus price target of $54.00, suggesting a potential upside of 29.75%. Given Silgan’s stronger consensus rating and higher probable upside, analysts plainly believe Silgan is more favorable than CCL Industries.
Insider and Institutional Ownership
70.3% of Silgan shares are held by institutional investors. 1.1% of Silgan shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares CCL Industries and Silgan”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CCL Industries | $5.48 billion | 1.94 | $574.28 million | $2.59 | 26.14 |
| Silgan | $6.68 billion | 0.66 | $288.40 million | $2.55 | 16.32 |
CCL Industries has higher earnings, but lower revenue than Silgan. Silgan is trading at a lower price-to-earnings ratio than CCL Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Silgan beats CCL Industries on 11 of the 17 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 Silgan
Silgan Holdings Inc., together with its subsidiaries, manufactures and sells rigid packaging solutions for consumer goods products in the United States and internationally. It operates through three segments: Dispensing and Specialty Closures, Metal Containers, and Custom Containers. The Dispensing and Specialty Closures segment offers a range of metal and plastic closures, and dispensing systems for food, beverage, health care, garden, home, personal care, beauty products, and hard surface cleaning products, as well as capping/sealing equipment and detection systems. The Metal Containers segment manufactures and sells steel and aluminum containers for food products, such as pet food, vegetables, soups, proteins, fruits, and other miscellaneous food products, as well as general line metal containers primarily for chemicals. 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. This segment also provides 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. The company markets its products primarily through direct sales force, as well as through a network of distributors, and an online shopping catalog. The company was founded in 1987 and is headquartered in Stamford, Connecticut.
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