Packaging Co. of America (PKG) & The Competition Critical Comparison

Packaging Co. of America (NYSE: PKG) is one of 5 public companies in the “Paperboard containers & boxes” industry, but how does it weigh in compared to its rivals? We will compare Packaging Co. of America to related companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, risk and institutional ownership.

Analyst Ratings

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This is a summary of current ratings for Packaging Co. of America and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Packaging Co. of America 0 6 6 0 2.50
Packaging Co. of America Competitors 33 218 266 4 2.46

Packaging Co. of America currently has a consensus price target of $128.64, suggesting a potential upside of 13.47%. As a group, “Paperboard containers & boxes” companies have a potential upside of 11.21%. Given Packaging Co. of America’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Packaging Co. of America is more favorable than its rivals.

Insider and Institutional Ownership

88.8% of Packaging Co. of America shares are owned by institutional investors. Comparatively, 70.7% of shares of all “Paperboard containers & boxes” companies are owned by institutional investors. 1.2% of Packaging Co. of America shares are owned by insiders. Comparatively, 4.5% of shares of all “Paperboard containers & boxes” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Volatility & Risk

Packaging Co. of America has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Packaging Co. of America’s rivals have a beta of 1.31, meaning that their average stock price is 31% more volatile than the S&P 500.

Earnings and Valuation

This table compares Packaging Co. of America and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Packaging Co. of America $6.44 billion $668.60 million 18.83
Packaging Co. of America Competitors $6.88 billion $394.19 million 21.58

Packaging Co. of America’s rivals have higher revenue, but lower earnings than Packaging Co. of America. Packaging Co. of America 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.

Dividends

Packaging Co. of America pays an annual dividend of $2.52 per share and has a dividend yield of 2.2%. Packaging Co. of America pays out 41.9% of its earnings in the form of a dividend. As a group, “Paperboard containers & boxes” companies pay a dividend yield of 2.5% and pay out 50.6% of their earnings in the form of a dividend. Packaging Co. of America has increased its dividend for 7 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Packaging Co. of America 10.37% 28.85% 9.51%
Packaging Co. of America Competitors 7.35% 17.33% 5.71%

Summary

Packaging Co. of America beats its rivals on 9 of the 15 factors compared.

Packaging Co. of America Company Profile

Packaging Corporation of America manufactures and sells containerboard and corrugated packaging products primarily in the United States. The company's Packaging segment offers various corrugated packaging products, such as conventional shipping containers used to protect and transport manufactured goods; multi-color boxes and displays that help to merchandise the packaged product in retail locations; and honeycomb protective packaging products. It also produces packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. This segment sells its corrugated products through a direct sales and marketing organization, independent brokers, and distribution partners. Its Paper segment manufactures and sells white papers comprising commodity and specialty papers with various features, such as colors, coatings, high brightness, and recycled content. The white papers also consist of communication papers, including cut-size office papers, and printing and converting papers; and pressure sensitive papers, such as release liners that are used to produce labels for use in consumer and commercially-packaged products. This segment sells white papers through the company's own sales personnel. Packaging Corporation of America was founded in 1867 and is headquartered in Lake Forest, Illinois.

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