Amcor (NYSE:AMCR) vs. O-I Glass (NYSE:OI) Critical Analysis

O-I Glass (NYSE:OI) and Amcor (NYSE:AMCR) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for O-I Glass and Amcor, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
O-I Glass	2	3	4	0	2.22
Amcor	0	7	7	1	2.60

O-I Glass presently has a consensus price target of $10.31, indicating a potential upside of 44.23%. Amcor has a consensus price target of $49.49, indicating a potential upside of 9.57%. Given O-I Glass’ higher probable upside, equities research analysts plainly believe O-I Glass is more favorable than Amcor.

Institutional and Insider Ownership

97.2% of O-I Glass shares are owned by institutional investors. Comparatively, 45.1% of Amcor shares are owned by institutional investors. 1.0% of O-I Glass shares are owned by company insiders. Comparatively, 0.3% of Amcor shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares O-I Glass and Amcor”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
O-I Glass	$6.43 billion	0.17	-$129.00 million	($7.52)	-0.95
Amcor	$23.51 billion	0.89	$177.00 million	$2.36	19.14

Amcor has higher revenue and earnings than O-I Glass. O-I Glass is trading at a lower price-to-earnings ratio than Amcor, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

O-I Glass has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Amcor has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500.

Profitability

This table compares O-I Glass and Amcor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
O-I Glass	-18.13%	10.40%	1.43%
Amcor	4.71%	15.92%	5.01%

Summary

Amcor beats O-I Glass on 11 of the 15 factors compared between the two stocks.

About O-I Glass

O-I Glass, Inc., through its subsidiaries, engages in the manufacture and sale of glass containers to food and beverage manufacturers primarily in the Americas, Europe, and internationally. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals. In addition, the company offers glass containers in a range of sizes, shapes, and colors. It sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. O-I Glass, Inc. was founded in 1903 and is based in Perrysburg, Ohio.

About Amcor

Amcor plc develops, produces, and sells packaging products in Europe, North America, Latin America, Africa, and the Asia Pacific regions. The company operates through two segments, Flexibles and Rigid Packaging. The Flexibles segment provides flexible and film packaging products in the food and beverage, medical and pharmaceutical, fresh produce, snack food, personal care, and other industries. The Rigid Packaging segment offers rigid containers for various beverage and food products, including carbonated soft drinks, water, juices, sports drinks, milk-based beverages, spirits and beer, sauces, dressings, spreads, and personal care items; and plastic caps for various applications. The company sells its products through its direct sales force. Amcor plc was incorporated in 2018 and is headquartered in Zurich, Switzerland.