Greif Bros. Corporation (GEF) vs. Bemis (BMS) Financial Contrast
Greif Bros. Corporation (NYSE: GEF) and Bemis (NYSE:BMS) are both mid-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.
Volatility and Risk
Greif Bros. Corporation has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Bemis has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
Greif Bros. Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.9%. Bemis pays an annual dividend of $1.20 per share and has a dividend yield of 2.9%. Greif Bros. Corporation pays out 103.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Bemis pays out 54.3% of its earnings in the form of a dividend. Bemis has increased its dividend for 33 consecutive years.
This is a breakdown of recent recommendations for Greif Bros. Corporation and Bemis, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Greif Bros. Corporation||1||2||4||0||2.43|
Greif Bros. Corporation currently has a consensus price target of $55.80, suggesting a potential downside of 3.06%. Bemis has a consensus price target of $48.75, suggesting a potential upside of 17.41%. Given Bemis’ higher possible upside, analysts clearly believe Bemis is more favorable than Greif Bros. Corporation.
Earnings and Valuation
This table compares Greif Bros. Corporation and Bemis’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Greif Bros. Corporation||$3.42 billion||0.81||$447.50 million||$1.63||35.31|
|Bemis||$4.02 billion||0.94||$562.80 million||$2.21||18.79|
Bemis has higher revenue and earnings than Greif Bros. Corporation. Bemis is trading at a lower price-to-earnings ratio than Greif Bros. Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Greif Bros. Corporation and Bemis’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Greif Bros. Corporation||2.81%||16.17%||4.95%|
Institutional and Insider Ownership
47.8% of Greif Bros. Corporation shares are held by institutional investors. Comparatively, 75.7% of Bemis shares are held by institutional investors. 16.4% of Greif Bros. Corporation shares are held by company insiders. Comparatively, 1.1% of Bemis shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Bemis beats Greif Bros. Corporation on 11 of the 17 factors compared between the two stocks.
About Greif Bros. Corporation
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.
Bemis Company, Inc. is a manufacturer of packaging products. The Company operates through two segments: U.S. Packaging and Global Packaging. The U.S. Packaging segment represents all food, consumer, and industrial products packaging-related manufacturing operations located in the United States. The Global Packaging segment includes all packaging-related manufacturing operations located outside of the United States, as well as global medical device and pharmaceutical packaging-related manufacturing operations. This segment manufactures multilayer polymer, blown and cast film structures to produce packaging sold for a range of food, medical, pharmaceutical, personal care, electronics, and industrial applications. Its products are sold to customers in the food industry. The Company’s other customers include companies in various types of businesses, including chemical, agribusiness, medical, pharmaceutical, personal care, electronics, construction, and other consumer goods.
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