WestRock (NYSE:WRK) and Greif (NYSE:GEF.B) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
This is a breakdown of current ratings and target prices for WestRock and Greif, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
WestRock currently has a consensus price target of $63.64, suggesting a potential upside of 42.08%. Given WestRock’s higher possible upside, analysts clearly believe WestRock is more favorable than Greif.
Valuation and Earnings
This table compares WestRock and Greif’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WestRock||$16.29 billion||0.70||$1.91 billion||$4.09||10.95|
|Greif||$3.64 billion||0.67||$118.60 million||N/A||N/A|
WestRock has higher revenue and earnings than Greif.
This table compares WestRock and Greif’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
WestRock has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500. Comparatively, Greif has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
WestRock pays an annual dividend of $1.82 per share and has a dividend yield of 4.1%. Greif pays an annual dividend of $2.64 per share and has a dividend yield of 5.2%. WestRock pays out 44.5% of its earnings in the form of a dividend. WestRock has raised its dividend for 2 consecutive years.
Institutional and Insider Ownership
85.7% of WestRock shares are owned by institutional investors. Comparatively, 5.6% of Greif shares are owned by institutional investors. 2.2% of WestRock shares are owned by company insiders. Comparatively, 16.2% of Greif shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
WestRock beats Greif on 9 of the 15 factors compared between the two stocks.
WestRock Company Profile
WestRock Company manufactures and sells paper and packaging solutions for the consumer and corrugated markets in North America, South America, Europe, Australia, and Asia. The company operates through three segments: Corrugated Packaging, Consumer Packaging, and Land and Development. The Corrugated Packaging segment produces containerboards, corrugated sheets, corrugated packaging, and preprinted linerboards for consumer and industrial products manufacturers, and corrugated box manufacturers. This segment also provides structural and graphic design, engineering services, and automated packaging machines; resells other products; and offers recycling and waste disposal services. Its corrugated packaging products are used to provide protective packaging for the shipment and distribution of food, paper, health and beauty, other household, consumer, commercial, and industrial products. The Consumer Packaging segment manufactures and sells folding and beverage cartons, displays, dispensing, and interior partitions; paperboards; recycled paperboards; express mail packages for the overnight courier industry; and secondary packages and paperboard packaging for the healthcare market. This segment also manufactures and sells solid fiber and corrugated partitions and die-cut paperboard components; temporary and permanent point-of-purchase displays for the consumer products and retail markets; lithographic laminated packaging products; and plastic packaging products, as well as provides contract packing services. The Land and Development segment engages in real estate development activities, primarily in Charleston, South Carolina. WestRock Company is based in Atlanta, Georgia.
Greif Company Profile
Greif, Inc. is a producer of industrial packaging products and services. The Company’s segments are Rigid Industrial Packaging & Services; Paper Packaging & Services; Flexible Products & Services, and Land Management. The Rigid Industrial Packaging & Services segment is engaged in the production and sale of rigid industrial packaging products, and services, such as container life cycle management, filling, logistics, warehousing and other packaging services. The Paper Packaging & Services segment is engaged in the production and sale of containerboard, corrugated sheets, corrugated containers and other corrugated products. The Flexible Products & Services segment is engaged in the production and sale of flexible intermediate bulk containers and related services on a global basis. The Land Management segment is involved in the management and sale of timber. As of October 31, 2016, the Company had operations in over 45 countries.
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