Financial Analysis: Sonoco Products Company (SON) vs. Sealed Air Corporation (SEE)
Sealed Air Corporation (NYSE: SEE) and Sonoco Products Company (NYSE:SON) are both mid-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitabiliy.
Sealed Air Corporation pays an annual dividend of $0.64 per share and has a dividend yield of 1.4%. Sonoco Products Company pays an annual dividend of $1.56 per share and has a dividend yield of 3.0%. Sealed Air Corporation pays out 37.0% of its earnings in the form of a dividend. Sonoco Products Company pays out 56.5% 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. Sealed Air Corporation has raised its dividend for 36 consecutive years.
This is a summary of current ratings and recommmendations for Sealed Air Corporation and Sonoco Products Company, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sealed Air Corporation||0||6||4||0||2.40|
|Sonoco Products Company||2||7||1||0||1.90|
Sealed Air Corporation currently has a consensus price target of $48.33, suggesting a potential upside of 4.96%. Sonoco Products Company has a consensus price target of $46.80, suggesting a potential downside of 9.51%. Given Sealed Air Corporation’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sealed Air Corporation is more favorable than Sonoco Products Company.
Insider & Institutional Ownership
90.5% of Sealed Air Corporation shares are held by institutional investors. Comparatively, 74.1% of Sonoco Products Company shares are held by institutional investors. 0.9% of Sealed Air Corporation shares are held by company insiders. Comparatively, 1.9% of Sonoco Products Company shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Sealed Air Corporation and Sonoco Products Company’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sealed Air Corporation||5.48%||85.72%||6.71%|
|Sonoco Products Company||5.93%||17.10%||6.71%|
Risk & Volatility
Sealed Air Corporation has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Sonoco Products Company has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.
Valuation and Earnings
This table compares Sealed Air Corporation and Sonoco Products Company’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Sealed Air Corporation||$6.80 billion||1.33||$1.04 billion||$1.73||26.62|
|Sonoco Products Company||$4.73 billion||1.09||$623.70 million||$2.76||18.74|
Sealed Air Corporation has higher revenue and earnings than Sonoco Products Company. Sonoco Products Company is trading at a lower price-to-earnings ratio than Sealed Air Corporation, indicating that it is currently the more affordable of the two stocks.
Sealed Air Corporation beats Sonoco Products Company on 11 of the 16 factors compared between the two stocks.
Sealed Air Corporation Company Profile
Sealed Air Corporation is engaged in food safety and security, facility hygiene and product protection business. The Company’s segments are Food Care, Diversey Care, Product Care and Other (includes Corporate, Medical Applications and New Ventures businesses). The Food Care segment focuses on providing a range of integrated system solutions. The Food Care business serves primarily perishable food and beverage processors, predominately in fresh red meat, smoked and processed meats, beverages, poultry and dairy (solids and liquids) markets throughout the world. The Diversey Care segment integrates cleaning chemicals, floor care machines, cleaning tools and equipment, and a range of services, including application and employee training, auditing of hygiene and appearance, and water and energy management. The Product Care segment provides customers with a range of Product Care solutions to meet cushioning, void fill, surface protection, retail display, containment and dunnage needs.
Sonoco Products Company Company Profile
Sonoco Products Company is engaged in manufacturing of industrial and consumer packaging products, and providing packaging services. The Company operates in four segments: Consumer Packaging, Paper and Industrial Converted Products, Display and Packaging, and Protective Solutions. Its Consumer Packaging segment’s products and services include round composite cans, aluminum, steel and peelable membrane easy-open closures for composite and metal cans; plastic bottles, cups and trays, and printed flexible packaging and global brand management. The Display and Packaging segment’s products and services include point-of-purchase displays; fulfilment; supply chain management, and paperboard specialties. Its Paper and Industrial Converted Products segment provides the raw material for its fiber-based packaging. The Protective Solutions segment’s products and services include custom-engineered and expanded foam protective packaging and components, and temperature-assured packaging.
Receive News & Stock Ratings for Sealed Air Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Sealed Air Corporation and related stocks with our FREE daily email newsletter.