Analyzing CCL Industries (OTCMKTS:CCDBF) and O-I Glass (NYSE:OI)

CCL Industries (OTCMKTS:CCDBF) and O-I Glass (NYSE:OI) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CCL Industries	10.27%	14.75%	7.89%
O-I Glass	-18.13%	10.40%	1.43%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CCL Industries	$5.48 billion	1.88	$574.28 million	$2.59	25.39
O-I Glass	$6.36 billion	0.15	-$129.00 million	($7.52)	-0.80

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CCL Industries and O-I Glass, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CCL Industries	0	1	4	0	2.80
O-I Glass	2	4	3	0	2.11

O-I Glass has a consensus price target of $9.69, suggesting a potential upside of 60.79%. Given O-I Glass’ higher possible upside, analysts plainly believe O-I Glass is more favorable than CCL Industries.

Dividends

CCL Industries pays an annual dividend of $1.04 per share and has a dividend yield of 1.6%. O-I Glass pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. CCL Industries pays out 40.2% of its earnings in the form of a dividend. O-I Glass pays out -2.7% 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. O-I Glass is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

97.2% of O-I Glass shares are held by institutional investors. 1.0% of O-I Glass shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

CCL Industries beats O-I Glass on 9 of the 15 factors compared between the two stocks.

About CCL Industries

CCL Industries Inc. manufactures and sells labels, consumer printable media products, technology-driven label solutions, polymer banknote substrates, and specialty films. It operates through CCL, Avery, Checkpoint, and Innovia segments. The CCL segment converts pressure sensitive and extruded film materials for a range of decorative, instructional, security, and functional applications for government institutions and global customers in consumer packaging, healthcare, chemicals, consumer durables, electronic device, and automotive markets. The Avery segment supplies labels, specialty converted media, and software solutions to enable short-run digital printing in businesses and homes alongside complementary products sold through distributors, mass-market stores, and e-commerce retailers. The Checkpoint segment engages in developing radio frequency and radio frequency identification-based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions for the retail and apparel industries. The Innovia segment supplies biaxially oriented polypropylene films to customers in the pressure sensitive label materials, flexible packaging, and consumer packaged goods industries. The company operates in Canada, the United States, Puerto Rico, Mexico, Brazil, Chile, Argentina, Europe, Asia, Australia, Africa, and New Zealand. CCL Industries Inc. was founded in 1951 and is headquartered in Toronto, Canada.

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.