Graphic Packaging (NYSE:GPK) versus AptarGroup (NYSE:ATR) Head to Head Analysis

Graphic Packaging (NYSE:GPK) and AptarGroup (NYSE:ATR) are both mid-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Profitability

This table compares Graphic Packaging and AptarGroup’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Graphic Packaging	6.18%	21.13%	5.74%
AptarGroup	10.84%	15.39%	8.60%

Earnings and Valuation

This table compares Graphic Packaging and AptarGroup”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Graphic Packaging	$8.64 billion	0.56	$658.00 million	$1.70	9.68
AptarGroup	$3.66 billion	2.08	$374.54 million	$6.25	18.57

Graphic Packaging has higher revenue and earnings than AptarGroup. Graphic Packaging is trading at a lower price-to-earnings ratio than AptarGroup, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

99.7% of Graphic Packaging shares are held by institutional investors. Comparatively, 88.5% of AptarGroup shares are held by institutional investors. 1.4% of Graphic Packaging shares are held by insiders. Comparatively, 0.7% of AptarGroup shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Graphic Packaging and AptarGroup, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Graphic Packaging	1	9	1	0	2.00
AptarGroup	0	3	4	0	2.57

Graphic Packaging presently has a consensus price target of $22.63, indicating a potential upside of 37.50%. AptarGroup has a consensus price target of $168.60, indicating a potential upside of 45.27%. Given AptarGroup’s stronger consensus rating and higher possible upside, analysts clearly believe AptarGroup is more favorable than Graphic Packaging.

Dividends

Graphic Packaging pays an annual dividend of $0.44 per share and has a dividend yield of 2.7%. AptarGroup pays an annual dividend of $1.92 per share and has a dividend yield of 1.7%. Graphic Packaging pays out 25.9% of its earnings in the form of a dividend. AptarGroup pays out 30.7% 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. Graphic Packaging has increased its dividend for 1 consecutive years and AptarGroup has increased its dividend for 31 consecutive years. Graphic Packaging is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

Graphic Packaging has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500. Comparatively, AptarGroup has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Summary

AptarGroup beats Graphic Packaging on 9 of the 17 factors compared between the two stocks.

About Graphic Packaging

Graphic Packaging Holding Company, together with its subsidiaries, designs, produces, and sells consumer packaging products to brands in food, beverage, foodservice, household, and other consumer products. It operates through three segments: Paperboard Manufacturing, Americas Paperboard Packaging, and Europe Paperboard Packaging. The company offers unbleached, bleached, and recycled paperboard to various paperboard packaging converters and brokers. It also provides paperboard packaging products for consumer packaged goods companies; and cups, lids, and food containers for foodservice companies and quick-service restaurants serving the food, beverage, and consumer product markets, including healthcare and beauty. The company also designs, manufactures, and installs specialized packaging machines. The company sells its products through sales offices, as well as through broker arrangements with third parties in the Americas, Europe, and the Asia Pacific. Graphic Packaging Holding Company was incorporated in 2007 and is headquartered in Atlanta, Georgia.

About AptarGroup

AptarGroup, Inc. designs and manufactures a range of drug delivery, consumer product dispensing, and active material science solutions and services for the pharmaceutical, beauty, personal care, home care, and food and beverage markets. The company operates through Aptar Pharma, Aptar Beauty, and Aptar Closures segments. It also provides pumps for nasal allergy treatments; and metered dose inhaler valves for respiratory ailments, such as asthma and chronic obstructive pulmonary diseases; elastomer for injectable primary packaging components; and active material science solutions. In addition, the company offers dispensing pumps, closures, elastomeric components, and aerosol valves to the digital health solutions. It primarily sells its products and services in Asia, Europe, Latin America, and North America. AptarGroup, Inc. was incorporated in 1992 and is headquartered in Crystal Lake, Illinois.