Critical Analysis: TriMas (TRS) vs. Sealed Air (SEE)
TriMas (NASDAQ: TRS) and Sealed Air (NYSE:SEE) are both industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.
Volatility and Risk
TriMas has a beta of 2.05, suggesting that its stock price is 105% more volatile than the S&P 500. Comparatively, Sealed Air has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.
Sealed Air pays an annual dividend of $0.64 per share and has a dividend yield of 1.3%. TriMas does not pay a dividend. Sealed Air pays out 61.5% of its earnings in the form of a dividend.
This is a summary of recent recommendations and price targets for TriMas and Sealed Air, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TriMas currently has a consensus price target of $25.25, indicating a potential downside of 5.43%. Sealed Air has a consensus price target of $49.20, indicating a potential upside of 1.42%. Given Sealed Air’s stronger consensus rating and higher probable upside, analysts clearly believe Sealed Air is more favorable than TriMas.
Earnings & Valuation
This table compares TriMas and Sealed Air’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TriMas||$794.02 million||1.54||-$39.80 million||($0.72)||-37.08|
|Sealed Air||$6.78 billion||1.29||$486.40 million||$1.04||46.64|
Sealed Air has higher revenue and earnings than TriMas. TriMas is trading at a lower price-to-earnings ratio than Sealed Air, indicating that it is currently the more affordable of the two stocks.
This table compares TriMas and Sealed Air’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
97.7% of TriMas shares are held by institutional investors. Comparatively, 92.9% of Sealed Air shares are held by institutional investors. 1.4% of TriMas shares are held by insiders. Comparatively, 1.1% of Sealed Air shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Sealed Air beats TriMas on 10 of the 16 factors compared between the two stocks.
TriMas Corporation is a designer, manufacturer and distributor of engineered products for commercial, industrial and consumer markets. The Company operates through four segments: Packaging, Aerospace, Energy and Engineered Components. The Packaging segment is a designer, manufacturer and distributor of engineered closure and dispensing systems for a range of end markets, including steel and plastic industrial, and consumer packaging applications. The Aerospace segment is a designer and manufacturer of a range of products for use in the aerospace industry. The Energy segment is a manufacturer and distributor of metallic and non-metallic gaskets, bolts, industrial fasteners and specialty products for the petroleum refining, petrochemical, oil field and industrial markets. The Engineered Components segment is a designer, manufacturer and distributor of high-pressure and acetylene cylinders for the transportation, storage and dispensing of compressed gases.
About Sealed Air
Sealed Air Corporation is engaged in food safety and security, facility hygiene and product protection business. The Company’s segments are Food Care (includes Corporate, Medical Applications and New Ventures businesses), Product Care and Corporate. 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 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.
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