Sonoco Products (NYSE:SON – Get Free Report) and Amcor (NYSE:AMCR – 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 valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Dividends
Sonoco Products pays an annual dividend of $2.16 per share and has a dividend yield of 4.2%. Amcor pays an annual dividend of $2.60 per share and has a dividend yield of 5.4%. Sonoco Products pays out -93.9% of its earnings in the form of a dividend. Amcor pays out 110.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Sonoco Products has raised its dividend for 43 consecutive years and Amcor has raised its dividend for 5 consecutive years.
Earnings and Valuation
This table compares Sonoco Products and Amcor”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonoco Products | $7.52 billion | 0.68 | $1.00 billion | ($2.30) | -22.46 |
| Amcor | $23.51 billion | 0.96 | $177.00 million | $2.36 | 20.59 |
Sonoco Products has higher earnings, but lower revenue than Amcor. Sonoco Products is trading at a lower price-to-earnings ratio than Amcor, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and price targets for Sonoco Products and Amcor, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonoco Products | 2 | 6 | 3 | 0 | 2.09 |
| Amcor | 0 | 6 | 5 | 1 | 2.58 |
Sonoco Products currently has a consensus target price of $57.38, suggesting a potential upside of 11.08%. Amcor has a consensus target price of $49.36, suggesting a potential upside of 1.60%. Given Sonoco Products’ higher possible upside, equities analysts clearly believe Sonoco Products is more favorable than Amcor.
Institutional and Insider Ownership
77.7% of Sonoco Products shares are held by institutional investors. Comparatively, 45.1% of Amcor shares are held by institutional investors. 1.0% of Sonoco Products shares are held by company insiders. Comparatively, 0.3% of Amcor shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Sonoco Products and Amcor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonoco Products | -3.08% | 16.40% | 5.16% |
| Amcor | 4.71% | 15.92% | 5.01% |
Volatility and Risk
Sonoco Products has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, Amcor has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500.
Summary
Amcor beats Sonoco Products on 10 of the 18 factors compared between the two stocks.
About Sonoco Products
Sonoco Products Company, together with its subsidiaries, designs, develops, manufactures, and sells various engineered and sustainable packaging products in North and South America, Europe, Australia, and Asia. The company operates Consumer Packaging and Industrial Paper Packaging segments. The Consumer Packaging segment offers round and shaped rigid paper, steel, and plastic containers; metal and peelable membrane ends, closures, and components; thermoformed plastic trays and enclosures; and high-barrier flexible packaging products. The Industrial Paper Packaging segment provides paperboard tubes, cones, and cores; paper-based protective packaging products; and uncoated recycled paperboard products. It also offers various packaging materials, including plastic, paper, foam, and other specialty materials. Sonoco Products Company sells its products in various markets, which include paper, textile, film, food, packaging, construction, and wire and cable. The company was founded in 1899 and is headquartered in Hartsville, South Carolina.
About Amcor
Amcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The company operates through two segments, Flexibles and Rigid Packaging. The Flexibles segment provides flexible and film packaging products in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment offers rigid containers for various beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads, and personal care items; and plastic caps for various applications. The company sells its products through its direct sales force. Amcor plc was incorporated in 2018 and is headquartered in Zurich, Switzerland.
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