Contrasting MeadWestvaco Corp. (MWV) & Packaging Corporation of America (PKG)
MeadWestvaco Corp. (NYSE: MWV) and Packaging Corporation of America (NYSE:PKG) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitabiliy, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
This table compares MeadWestvaco Corp. and Packaging Corporation of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Packaging Corporation of America||7.81%||27.29%||8.40%|
Institutional & Insider Ownership
89.5% of Packaging Corporation of America shares are owned by institutional investors. 1.2% of Packaging Corporation of America shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares MeadWestvaco Corp. and Packaging Corporation of America’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Packaging Corporation of America||$5.91 billion||1.67||$1.18 billion||$4.90||21.58|
Packaging Corporation of America has higher revenue and earnings than MeadWestvaco Corp..
This is a summary of recent recommendations and price targets for MeadWestvaco Corp. and Packaging Corporation of America, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Packaging Corporation of America||1||5||4||0||2.30|
Packaging Corporation of America has a consensus target price of $95.10, suggesting a potential downside of 10.08%. Given Packaging Corporation of America’s higher possible upside, analysts clearly believe Packaging Corporation of America is more favorable than MeadWestvaco Corp..
Packaging Corporation of America pays an annual dividend of $2.52 per share and has a dividend yield of 2.4%. MeadWestvaco Corp. does not pay a dividend. Packaging Corporation of America pays out 51.4% of its earnings in the form of a dividend. Packaging Corporation of America has increased its dividend for 6 consecutive years.
Packaging Corporation of America beats MeadWestvaco Corp. on 10 of the 11 factors compared between the two stocks.
About MeadWestvaco Corp.
MeadWestvaco Corporation (MWV) is a global packaging company. The company’s segments include Food & Beverage, Home, Health & Beauty, Industrial, Specialty Chemicals, and Community Development and Land Management. The Food & Beverage segment produces packaging materials, and designs and produces packaging solutions for the food, food service, beverage, dairy, tobacco end markets and paperboard for commercial printing. The Home, Health & Beauty segment offers packaging solutions for the personal care, fragrance, home care, lawn and garden, prescription drug and healthcare end markets. The Industrial segment designs and produces corrugated packaging solutions, for produce, meat, consumer products and bulk goods. The Specialty Chemicals segment manufactures, markets and distributes specialty chemicals. The Community Development and Land Management segment is responsible for maximizing the value of its 94,000 development acres in the Charleston, South Carolina region.
About Packaging Corporation of America
Packaging Corporation of America (PCA) is a producer of containerboard products and uncoated freesheet. The Company operates through three segments: Packaging, Paper, and Corporate and Other. The Packaging segment produces a range of corrugated packaging products. The Paper segment manufactures and sells a range of papers, including communication-based papers and pressure sensitive papers. The Company’s containerboard mills produces linerboard and semi-chemical corrugating medium, which are papers primarily used in the production of corrugated products. The Company’s corrugated products manufacturing plants produce a range of corrugated packaging products, including conventional shipping containers used to protect and transport manufactured goods, multi-color boxes and displays. The Company also produces packaging for meat, fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products.
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