Contrasting AptarGroup (ATR) and Owens-Illinois (OI)
AptarGroup (NYSE: ATR) and Owens-Illinois (NYSE:OI) are both mid-cap industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitabiliy, institutional ownership and risk.
This table compares AptarGroup and Owens-Illinois’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
90.0% of AptarGroup shares are held by institutional investors. Comparatively, 95.8% of Owens-Illinois shares are held by institutional investors. 5.3% of AptarGroup shares are held by insiders. Comparatively, 1.5% of Owens-Illinois shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for AptarGroup and Owens-Illinois, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AptarGroup presently has a consensus target price of $77.00, suggesting a potential downside of 10.41%. Owens-Illinois has a consensus target price of $24.63, suggesting a potential upside of 7.82%. Given Owens-Illinois’ stronger consensus rating and higher probable upside, analysts clearly believe Owens-Illinois is more favorable than AptarGroup.
AptarGroup pays an annual dividend of $1.28 per share and has a dividend yield of 1.5%. Owens-Illinois does not pay a dividend. AptarGroup pays out 38.7% of its earnings in the form of a dividend. AptarGroup has increased its dividend for 4 consecutive years.
Earnings and Valuation
This table compares AptarGroup and Owens-Illinois’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AptarGroup||$2.35 billion||2.28||$475.05 million||$3.31||25.97|
|Owens-Illinois||$6.73 billion||0.55||$1.07 billion||$1.16||19.69|
Owens-Illinois has higher revenue and earnings than AptarGroup. Owens-Illinois is trading at a lower price-to-earnings ratio than AptarGroup, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
AptarGroup has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500. Comparatively, Owens-Illinois has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Owens-Illinois beats AptarGroup on 9 of the 17 factors compared between the two stocks.
AptarGroup, Inc. is a provider of a range of packaging, dispensing and sealing solutions, primarily for the beauty, personal care, homecare, prescription drug, consumer healthcare, injectables, food and beverage markets. The Company has manufacturing facilities located throughout the world, including North America, Europe, Asia and South America. The Company operates through three segments: Beauty + Home, Pharma and Food + Beverage. It offers various dispensing and sealing solutions. Its primary products are dispensing pumps, closures, aerosol valves and elastomeric primary packaging components. Its elastomeric components also include pre filled syringe components, such as plungers, needle shields, tip caps and cartridges, as well as dropper bulbs and syringe plungers. Its Beauty + Home segment primarily sells pumps, closures, aerosol valves, accessories and sealing solutions to the personal care and home care markets, and pumps and decorative components to the beauty market.
Owens-Illinois, Inc. is a manufacturer of glass container products. The Company’s principal product lines are glass containers for the food and beverage industries. The Company’s segments include Europe, North America, Latin America and Asia Pacific. The Company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits and wine. The Company also produces glass packaging for a range of food items, soft drinks, teas, juices and pharmaceuticals. The Company manufactures glass containers in a range of sizes, shapes and colors. The Company also provides engineering support for its glass manufacturing operations through facilities located in the United States, Australia, France, Poland, Colombia and Peru. As of December 31, 2016, the Company had 79 glass manufacturing plants in 23 countries. The Company has a distribution facility used to import glass containers from its business in Mexico.
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