AptarGroup (NYSE:ATR – Get Free Report) and International Paper (NYSE:IP – Get Free Report) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.
Analyst Ratings
This is a breakdown of current ratings for AptarGroup and International Paper, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AptarGroup | 0 | 3 | 5 | 0 | 2.62 |
| International Paper | 1 | 3 | 10 | 0 | 2.64 |
AptarGroup currently has a consensus price target of $172.80, suggesting a potential upside of 44.04%. International Paper has a consensus price target of $48.75, suggesting a potential upside of 52.50%. Given International Paper’s stronger consensus rating and higher possible upside, analysts plainly believe International Paper is more favorable than AptarGroup.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| AptarGroup | 9.22% | 13.31% | 6.96% |
| International Paper | -14.20% | -1.09% | -0.44% |
Institutional & Insider Ownership
88.5% of AptarGroup shares are owned by institutional investors. Comparatively, 82.0% of International Paper shares are owned by institutional investors. 0.7% of AptarGroup shares are owned by company insiders. Comparatively, 0.2% of International Paper shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Dividends
AptarGroup pays an annual dividend of $1.92 per share and has a dividend yield of 1.6%. International Paper pays an annual dividend of $1.85 per share and has a dividend yield of 5.8%. AptarGroup pays out 34.7% of its earnings in the form of a dividend. International Paper pays out -28.4% 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. AptarGroup has raised its dividend for 31 consecutive years. International Paper is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
AptarGroup has a beta of 0.34, indicating that its share price is 66% less volatile than the S&P 500. Comparatively, International Paper has a beta of 0.93, indicating that its share price is 7% less volatile than the S&P 500.
Valuation & Earnings
This table compares AptarGroup and International Paper”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AptarGroup | $3.78 billion | 2.02 | $392.79 million | $5.53 | 21.69 |
| International Paper | $23.63 billion | 0.72 | -$3.52 billion | ($6.52) | -4.90 |
AptarGroup has higher earnings, but lower revenue than International Paper. International Paper is trading at a lower price-to-earnings ratio than AptarGroup, indicating that it is currently the more affordable of the two stocks.
Summary
AptarGroup beats International Paper on 10 of the 17 factors compared between the two stocks.
About AptarGroup
AptarGroup, Inc. designs and manufactures a range of drug delivery, consumer product dispensing, and active material science solutions and services for the pharmaceutical, beauty, personal care, home care, and food and beverage markets. The company operates through Aptar Pharma, Aptar Beauty, and Aptar Closures segments. It also provides pumps for nasal allergy treatments; and metered dose inhaler valves for respiratory ailments, such as asthma and chronic obstructive pulmonary diseases; elastomer for injectable primary packaging components; and active material science solutions. In addition, the company offers dispensing pumps, closures, elastomeric components, and aerosol valves to the digital health solutions. It primarily sells its products and services in Asia, Europe, Latin America, and North America. AptarGroup, Inc. was incorporated in 1992 and is headquartered in Crystal Lake, Illinois.
About International Paper
International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others. It sells its products directly to end users and converters, as well as through agents, resellers, and distributors. The company was founded in 1898 and is headquartered in Memphis, Tennessee.
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